fushan-raises-252-million-for-acquisition

Fushan raises $252 million for acquisition

The chairman of the coking coal company buys a quarter of the placement that forms part of an acquisition financing package arranged by BOCI.

By Anette Jönsson

June 22, 2008

Fushan International Energy Group, a Shanxi-based coking coal processor, raised HK$1.97 billion $252 million late Thursday from a sale of new shares, becoming the first Hong Kong-listed company to raise fresh capital through a placement in two weeks.

The sale was part of a financing package put together by BOC International to pay for an acquisition of three coking coal mines that was announced about a month ago and followed a similarly sized share placement to a strategic investor earlier in the week. ThursdayÆs placement was completed at a 4.3% premium to the strategic placement, which saw steel manufacturer Shougang Holding Hong Kong acquire $265 million worth of shares at HK$4.60 each. Assuming...

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