Wanguo Gold to launch $701m convertible bond issue for overseas asset acquisitions
Hong Kong-listed miner Wanguo Gold Group said on Wednesday it had agreed to issue HK$5.50-billion ($701.18-million) worth of 0.75% convertible bonds maturing in 2027 to buy overseas gold mining assets.
Wanguo said it had entered into a subscription agreement with UBS AG Hong Kong Branch as sole manager for the issuance.
The initial conversion price is HK$15.62 per share, a premium of 20.2% to the stock's last close on Tuesday.
If fully converted at the initial price, the bonds would convert into a maximum of 352.1-million new shares, representing 8% of Wanguo Gold's current share capital, or 7.40% of the enlarged share capital.
The company intends to list the bonds on the Vienna MTF, operated by the Vienna Stock Exchange.
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