Thursday, May 29, 2008

Changfeng Motors plans 900 mln yuan placement

China's Hunan Changfeng Motors Co, owned 16 percent by Mitsubishi Motors Corp, said on Wednesday it planned to raise about 900 million yuan ($129 million) via a share placement.

The small Chinese SUV and pick-up truck maker said it would issue up to 100 million new shares, or nearly 20 percent of its expanded share capital, to as many as 10 institutional investors such as asset management firms and securities houses.

The shares will be issued at no less than 9.08 yuan each, and no less than 90 percent of the stock's average market price over the previous 20 trading days, Hunan Changfeng said. The stock last closed at 11.55 yuan.

Hunan Changfeng said funds raised would help it to expand its vehicle line-up and boost its annual production capacity by 30,000 SUVs and 20,000 pick-up trucks.

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