Theme issues $64m shares
FASHION retailer Theme International Holdings is enlarging its capital by about 20 per cent through a placement of new shares with Chiu Ka-lun, Value Partners and Easyknit Enterprise Co.
Theme told the stock exchange the three parties had agreed to subscribe for 72 million new shares at 90 cents a share, a discount of 9 per cent to the stock's close of 99 cents yesterday.
The stock was the biggest gainer, rising 12 cents or 13.7 per cent on a turnover of $3.25 million.
The placement will raise $64.8 million, which Theme will use as additional working capital.
Of the 72 million shares, Theme said Mr Chiu would take 58 million shares, and Value Partners and Easyknit seven million each.
Value Partners was subscribing on behalf of Value Partners 'A' Fund.
Easyknit is a wholly owned subsidiary of listed Easyknit International Holdings.
Directors said Mr Chiu and Easyknit were established members of the textiles industry, and their industry position and experience were expected to benefit the company.
'Value Partners is a Hong Kong fund manager whose further investment in Theme on behalf of funds under its management is welcomed by the board of Theme,' the directors said.
They said Mr Chiu already held 8.9 per cent of Theme, and his stake would rise to about 20.9 per cent of the enlarged issued capital.
Value Partners, whose funds already held Theme shares, would end up with 7.8 per cent of the enlarged capital.
Easyknit, which did not own shares in Theme, would end up with 1.6 per cent. After the placement the 55 per cent of Theme owned by its chairman, Lai Ngan-long, and by a firm associated with him, would be diluted to about 45.8 per cent.
