Hong Kong-listed flat glass maker Zhejiang Glass Co Ltd. said it has received an investment proposal of up to USD 75 million from the International Finance Corp (IFC), the investment arm of the World …
Hong Kong-listed flat glass maker Zhejiang Glass Co Ltd. said it has received an investment proposal of up to USD 75 million from the International Finance Corp (IFC), the investment arm of the World Bank, and a proposal of up to USD5 million from Scion Capital. The IFC investment may consist of USD 50 million in loan financing and USD 25 million in equity investment through the subscription of 107.67 million Zhejiang shares at HKD 1.80 each, the company said in a statement. IFC would hold a 14.94% stake in Zhejiang Glass after the subscription, the firm said. Scion Capital“s USD 5 million investment would involve the subscription of 21.53 million shares at HKD 1.8 each. Zhejiang Glass said it has also been in discussion with several potential institutional investors for possible equity investment in the company. The company said it had been proposed that equity investment by such institutional investors should not exceed HKD 23.3 million by way of subscription to 12.92 million shares at HKD 1.8 each. Zhejiang Glass said the bulk of the proceeds of the share issue will be used to repay part of its outstanding short-term bank loans, and the balance will serve as working capital for business development and expansion.