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2003-9-10 12:15:00 p.m. HKT, XFNA
CORRECTION - HK-listed Swank to sell stake in unit/plans cash call to cut debt
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(Correcting amount raised in 1st graf to 40.00 mln hkd from 50.00 mln)
HONG KONG (AFX-ASIA) - Swank International Manufacturing Company Ltd (663.
HK) proposes to raise 40.00 mln hkd through a 13-for-one cash call and the
disposal of its stake in a unit in a bid to lower its 250.00 mln hkd debt.
In a statement, the company said it has entered into an agreement to
sell 30.00 pct of unit Profitown Investment Corp Ltd's equity and loan for 3.
00 mln hkd to parent Probest Inc.
Probest, a wholly-owned unit of Tomorrow International Holdings Ltd (760.
HK), owns 57.90 pct of Swank.
As part of the loan settlement agreement, Swank said Probest has agreed
to waive outstanding principal of 47.00 mln hkd.
Swank said it will also raise 37.00 mln hkd from the issue of 2.90 bln
shares at 0.013 hkd each through an open offer on the basis of 13 shares for
every one share held.
Probest has undertaken to subscribe fully to its entitlements under the
open offer, it added.
The remaining outstanding principal of 163.00 mln hkd will be paid in
instalments in accordance to the terms of the promissory notes, it said.
""It is the intention of Probest and Swank to keep the listing of the
shares on the stock exchange,"" the company added.
(1 usd = 7.8 hkd)
leonora.walet@afxasia.com
lw/clf/ds
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