SMIC (0981.HK), the world's fourth largest contract chipmaker and China's biggest, said it has agreed to sell convertible preferred shares plus warrants to China's sovereign fund to raise about $250 million to help finance capital expenditure and cut debt. In a filing with the Hong Kong stock exchange late on Monday, Shanghai-based SMIC (SMI.N) said it will issue about 360.59 million convertible preferred shares -- representing 13.2 percent of its existing issued share capital -- at HK$5.39 each, plus about 72 million warrants to China Investment Corp [CIC.UL]. The price of the convertible preferred shares reflects conversion price of HK$0.539 per ordinary share, representing a discount of about 11.6 percent to SMIC's stock closing price of HK$0.61 on Monday. The holder of the convertible preferred shares will have the right at any time to convert their shares into the company's ordinary shares, it added. For details, click: here 0418896.pdf Bank of America Merrill Lynch is the exclusive financial adviser to SMIC on the deal, which requires SMIC shareholders' approval, it said. SMIC has previously said that it plans to invest $12 billion over the next five years to expand its output and aims for an annual capacity of 2 million 12-inch wafers by 2015. SMIC's 12-inch fabs are now in Beijing, Shanghai and Wuhan. [ID:nTST000852] SMIC plans to invest 46 billion yuan ($6.7 billion) in an integrated circuit plant in Beijing, a Chinese government document showed late last month, to satisfy rising global demand for electronics. SMIC has submitted its environmental report for the second phase of its Beijing operations, according to the website of China's ministry of environmental protection. (Reporting by Charlie Zhu; Editing by Jon Loades-Carter) |
