Shareholders of i-Cable Communications Ltd. (1097.HK) approved the proposed raising of 704 million Hong Kong dollars (US$90.5 million) in an open-offer refinancing deal that would pave the way for a change of ownership at the company.
Under the plan unveiled last month, the struggling pay-television operator--which is currently controlled by Hong Kong conglomerate Wharf (Holdings) Ltd. (0004.HK)--will issue 3.35 billion shares at HK$0.21 apiece. Existing shareholders will be offered five shares for every three they hold.
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Forever Top (Asia) Ltd., a consortium controlled by Hong Kong tycoon Henry Cheng and Chow Tai Fook Enterprises Ltd., earlier agreed to fully underwrite any open shares that aren't acquired by i-Cable's existing shareholders. Under this deal, Forever Top could accumulate a stake of up to 62.5% in i-Cable if none of the company's shareholders take up the shares.
Last month, i-Cable said Wharf wouldn't be subscribing for the shares to which it was entitled under the open offer.
Shares of i-Cable were up 5.2% at HK$0.61 midday Monday.
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(END) Dow Jones Newswires
May 29, 2017 01:26 ET (05:26 GMT)