China Everbright to invest $284m in SGX-listed Ying Li

It's poised to be the second-largest shareholder.

Energy conglomerate China Everbright Limited (CEL) is poised to make a $284 investment in Ying Li International Real Estate, the companies announced in a statement today.

If approved, the deal will make CEL the second-largest shareholder of Ying Li, next only to its Executive Chairman and Group CEO Fang Ming.

According to the release, “Ying Li will use the monies to accelerate development of existing projects and finance new projects. Ying Li aims to leverage on CEL’s network and strong connections to secure projects in prime locations in the first- and leading second-tier cities in China, as well as seek expansion into Singapore and Hong Kong.”

Here’s more:
Ying Li International Real Estate Limited (“Ying Li” or the “Group”) a PRC-based property developer listed on the Singapore Exchange, intends to seek shareholders’ approval to bring in CEL as its strategic and second largest shareholder.

Ying Li is proposing to issue new shares and perpetual convertible securities to Everbright Hero Holdings Limited (“EHHL”) for an aggregate of approximately S$284 million. EHHL is an indirect wholly-owned subsidiary of CEL, the asset management arm of the significant China Everbright Group.

The transaction will be completed in two phases:

Phase A involves the issuance and allotment of 381 million new shares at S$0.260 per share to raise approximately S$99 million. EHHL will own approximately 14.9% of the enlarged share capital of the Group after completing Phase A and become the second largest shareholder of Ying Li.

Phase B involves the issuance of perpetual convertible securities in two tranches – S$165 million (Tranche 1) and S$20 million (Tranche 2). Please refer to the announcement for more information on the perpetual convertible securities.