China CNR ditches private placement for rights issue
Updated: 2011-10-10 15:45
(Agencies)
|
|||||||||||
SHANGHAI - China CNR Corp has cancelled plans for a private share placement and will instead issue new shares to raise a much smaller amount, about $1.11 billion, the company said in a statement published on Monday in the Shanghai Securities News.
Under the terms of the rights issue, the railcar maker will sell up to 2.49 billion new shares, issuing 3 shares for every 10 existing shares, the company said.
The company hopes to raise up to 7.1 billion yuan ($1.11 billion) for purposes including research and development, expanding its leasing unit and replenishing working capital.
The amount that it now hopes to raise dropped from 10 billion yuan it originally planned, due in part to a weak stock market, the Shanghai Securities News said in a separate report.
Beijing has said it would suspend new railway project approvals and launch safety checks on existing equipment to address public anger following a crash on a new high-speed rail line in July that killed 40 people.
Related Stories
CNR Corp posts 145% jump in H1 net profit 2011-08-26 09:35
China's CNR delays $5b IPO after crash 2011-08-16 14:49
China CNR signs subway contract with MTR 2011-07-23 13:40
China CNR 2010 net profits surge 45% 2011-04-08 15:02
- China close to hitting affordable housing target
- Central Huijin buys stocks in 4 major banks
- China CNR ditches private placement for rights issue
- Wal-Mart stores closed and fined in SW China
- Coming soon: Cell phones that do it all
- Car rentals switch up several gears
- Sinopec to buy Canada's Daylight for $2b
- 'Crash' train line back to normal