china everbright limited intends to invest hk$1.76 billion in ying li, a prc property developer listed in singapore to become its second largest and strategic shareholder
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hong kong, 30 june 2014 – everbright hero holdings limited (“ehhl”), an indirect wholly-owned subsidiary of cel, has agreed to invest approximately s$284 million (equivalent to approximately hk$1.76 billion) in ying li, a prc-based property developer listed on the singapore exchange, through subscription of new shares and perpetual convertible securities. ying li will seek shareholders’ approval to bring in cel as its second largest and strategic shareholder.
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 ying li 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 specific announcement of this transaction made earlier on the same day (30 june 2014) for more information on the perpetual convertible securities.
cel and ying li have also entered into an agreement outlining a framework for cooperation. after the approval of the subscription of the shares and perpetual convertible securities, both cel and ying li will introduce pipeline property projects for joint development, and cel will provide ying li with necessary resources and business networks to participate in market consolidation opportunities and to undertake strategic acquisitions of prime location projects in the first- and second-tier cities through cel’s real estate fund. as at 31 december 2013, cel’s real estate portfolio consisted of 18 residential and commercial properties situated primarily in the first- and second-tier cities in china.
the cooperation synergises the respective strengths of both parties. capitalise on cel’s extensive financial networks and cel real estate fund’s expertise on commercial property management, the cooperation facilitates ying li’s development in terms of project acquisitions, financing arrangement, commercial property management, etc. furthermore, through this strategic cooperation, cel will assist ying li to expand their presence in prime location projects in the first-tier and the leading second-tier cities in china other than chongqing.
cel commented, “we are looking forward to a long-term partnership with ying li. we like ying li’s strategy of focusing on high-quality commercial and retail property development and urban renewal in the chongqing central business district, which provides cel’s real estate fund an efficient access into chongqing’s prime property projects. moreover, the transaction provides cel opportunities to further develop real-estate asset management products in future. we believe this strategic cooperation can provide complementary advantages and bring about mutual benefits to each other.”
mr fang ming, executive chairman and ceo of ying li added, “we are honoured to be working with cel, one of the leading financial institutions in china. post-transaction, our balance sheet will be strengthened, which will put us in a robust position to capture quality projects in china. we plan to capitalise on cel’s expertise in retail property management to extract greater value from our existing commercial properties. we also aim to leverage on cel’s extensive network and strong connections to expand our presence in the first- and leading second-tier cities in china and in hong kong and singapore.”
dbs acts as the financial advisor in the transaction.
about china everbright limited
china everbright limited (stock code: 165.hk) has woven huge cross-border social and business networks in hong kong and the mainland. cel, being a member of china everbright group, is a diversified financial services enterprise operating in hong kong and mainland china. it is the second largest shareholder of everbright securities (stock code: 601788.sh) and third largest shareholder of china everbright bank (stock code: 601818.sh, 6818.hk) in the mainland.
established in 1997 at hong kong, cel persistently pursues its “macro asset management” strategy, with specific focuses being placed on fund management and investment businesses, namely primary market investment, secondary market investment and structured financing and investment.
moreover, being a substantial shareholder of china aircraft leasing company limited, cel is actively developing aircraft leasing business in china and emerging markets. in addition, by leveraging the advantages in cross-border fee-based business of an associate, everbright securities, cel also participates in the development of investment banking (corporate financing) and brokerage services (wealth management) businesses in hong kong.
over the past years, cel has developed solid bases in various sector markets. it manages series of private equity funds, venture capital funds, sector focus funds and hedge funds as operated via an international management platform, and provides overseas investors with opportunities to explore and invest in companies with fast growing potential in the mainland china. on the other hand, cel also seeks investment opportunities from overseas and provides diversified financial services for its clients in mainland china. as of 31 december 2013, cel’s asset under management reached over hk$33 billion, with a total of 16 funds.
through upholding the philosophy of “making wealth simple”, cel leverages on its own substantial financial strength, as well as the position and influence of china everbright group and its affiliated companies in the financial industry in china, and has successfully built huge cross-border social and business networks in hong kong and the mainland, and established a reputable image in the market.
for more information on cel, please visit 九游会登录-九游会登陆
about ying li international real estate limited
ying li international real estate limited is the first chongqing-based property developer to be listed in singapore. ying li is engaged in the development, sale, rental, management and long-term ownership of high-quality commercial and residential properties in prime locations in chongqing.
“chongqing yingli” is a recognisable brand name in chongqing for quality, innovation and excellence in commercial property development, and is well-positioned to capitalise on the growing market in chongqing. established in 1993, ying li has a solid track record in urban renewal, having transformed old city areas into high-quality and premier-design developments. ying li has modernised the landscape of chongqing’s main business districts with the development of several landmark commercial buildings, such as new york new york, zou rong plaza, future international and ying li international financial centre.
over the years, ying li has earned numerous awards and accolades such as the chongqing real estate development industry trustworthy brand award (highest aaa category).
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