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New Silkroad Announces HK$1.466 billion Proposed Open Offer

October 20, 2016 Destination North Asia No Comments Email Email

New Silkroad Culturaltainment Limited (“New Silkroad” or the “Company”, HKEx Code: 00472) today announced a proposed open offer to the existing shareholders to raise not less than HK$1.466 billion. The Company intends to issue not less than 916,454,764 Offer Shares and not more than 976,854,764 Offer Shares on the basis of two Offer Shares for every five existing shares, at the subscription price of HK$1.60 per Offer Share. Macrolink Culturaltainment Development Co., Ltd. (SZSE Code: 000620), a controlling shareholder of the Company, through its wholly-owned subsidiary Macro-Link International Land Limited, has agreed to fully underwrite all the Offer Shares in addition to its entitlement of 336,478,946 Offer Shares.

The subscription price represents a premium of approximately 4.58% to the closing price of HK$1.53 per share on the Stock Exchange of Hong Kong Limited on 18 October 2016, and a premium of approximately 3.23% to the theoretical ex-entitlement price of approximately HK$1.55 per share.

The Open Offer will provide capital for the development of New Silkroad’s cultural tourism and gaming projects in Jeju Island. It will also help to reduce the Company’s financing cost and gearing ratio, enhance the financial position and future working capital base, further strengthening the Company’s capital structure and allow the Company the capacity to grasp the right investment opportunities as they arise.

Mr. Paul Ng, Executive Director of New Silkroad, said: “With the booming gaming and cultural tourism industry in Jeju Island, we hope the Open Offer will equip us with a solid financial foundation for the development of a world-class gaming and entertainment complex and a large-scale tourist resort in South Korea. Through the Open Offer, we hope to provide all shareholders with an equal opportunity to participate in the long-term development of the Company which shall benefit the Company and the Shareholders as a whole. Our major shareholder’s commitment in fully underwrite the Offer Shares also demonstrates its confidence in the long-term development and prospects of the Company.”

The proposed Open Offer is subject to shareholders’ approval at the Company’s special general meeting.

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