It is reported that Wuhu Port Storage and Transportation plans to place 170 million shares to its largest shareholder, Huai Nan Mine Industry Group at CNY 8.78 per share to raise CNY 1.5 billion.

Of the CNY 1.5 million expected to be raised by the private placement, CNY 592 million will be injected into its subsidiary, Huai Nan Mine Logistics and CNY 408 million will be lent to it to complement its cash flow. In addition, Wuhu Port will use the remaining CNY 500 million to complement its own cash flow.

Huai Nan Mine Industry Group holds 335 million shares of Wuhu Port, equivalent to a 32.02% stake in Wuhu Port. Its holdings in Wuhu Port will increase to 41.56% after it buys Wuhu Port’s new shares in cash.

(Sourced from Shanghai Securities Daily)