China's MMG plans to raise $1.16 bln to repay debt, fund mine development
Adds context, shares in paragraphs 2, 6 and 7
June 4 (Reuters) -China's MMG 1208.HK said on Tuesday it plans to raise about HK$9.08 billion ($1.16 billion) through a rights issue to repay existing debt, allowing the Hong Kong-listed company to better support the ongoing development of its operating mines.
The deal is the largest such offeringin Hong Kong for more than a year after Link REIT 0823.HK raised $2.4 billion in March 2023, according to Dealogic data. It is the third largest rights issue in the city in five years, the data showed.
The issueof 3.47 billion shares will be based on two rights shares for every five shares held at a subscriptionprice of HK$2.62 apiece, MMG said in an exchange filing.
The subscription price is at a discount of about 31.41% to MMG's last closing price of HK$3.82 on Friday.
Separately, coal miner Yankuang Energy Group 600188.SS, 1171.HK said it had raised HK$4.96 billion by selling 285 million shares at HK$17.39 apiece to repay its existing debt.
Hong Kong-listed shares of Yankuang Energy fell 9.5% and were on course for their biggest intraday drop in 11 months.
MMG shares dropped as much as 11.3% to a two-month low after resuming trade.
($1 = 7.8200 Hong Kong dollars)
Reporting by Roushni Nair and Scott Murdoch; Editing by Maju Samuel, Subhranshu Sahu and Nivedita Bhattacharjee
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