Business

China’s Haidilao plans $302 mln share sale for credit facilities repayment

Restaurant chain Haidilao International Holding Ltd (6862.HK) plans to sell HK$2.35 billion ($301.6 million) of new shares in a top-up placing, raising capital for repayment of credit facilities and to enhance supply chain management and product development.

The Chinese hot pot chain operator plans to sell 115 million new shares to major shareholder, SP NP Ltd, at HK$20.43 apiece, or at 7.97% discount to Thursday’s close of HK$22.20 each, it said in a filing to the Hong Kong bourse early on Friday.

The major shareholder will buy the new shares on completion of sales of the same amount of existing shares at the same price to third investors. Proceeds will also be used for working capital and general corporate purposes.

Shares of Haidilao have fallen 62.8% this year as of the last close on Thursday.

($1 = 7.7917 Hong Kong dollars)