Mainland China real estate developer Landing International Development Ltd on Tuesday said a rights issue it plans would raise “not less than” circa HKD6.45 billion (US$832 million). A total of 69 percent of that sum – to a maximum of HKD4.46 billion, i.e. the equivalent of US$575.3 million – is to be spent on its share of construction costs for the Resorts World Jeju casino project (pictured in a rendering) in South Korea, the firm added.
A further HKD227 million would be spent on construction and establishment of what it describes as a “training centre” in Jeju. The remainder of the proceeds from the exercise would be used for a residential project in Hunan, mainland China; repayment of debt; and working capital for the group, including budgeted expenses connected with operating an aircraft, the developer said in a filing to the Hong Kong Stock Exchange.
Landing International is linking with Singapore casino operator Genting Singapore Plc to build the US$1.8-billion Jeju casino resort. As the law in South Korea currently stands, the casino component of the resort will be open to foreigners-only.
After a share consolidation by Landing International becomes effective – which is currently scheduled for June 3 – the firm says it intends to issue 10 rights shares for every one consolidated share at the subscription price of HKD0.35 per rights share.
Trading in fully paid rights shares is expected to start at the beginning of Hong Kong trading on July 8.
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Vitaly Umansky, Kelsey Zhu and Tianjiao Yu
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