Emperor Watch & Jewellery announces top-up placing & subscription of shares of 800 million shares to raise HK$786.8 million
Apr 11, 2011
STOCKS UP INVENTORY FOR SUPPORTING STORE EXPANSION PLAN
(Hong Kong, 19 April, 2011) Emperor Watch & Jewellery Limited (the “Group” or “Emperor Watch & Jewellery”) (Stock code: 887), a leading retailer of luxury watch and fine jewellery today announces its top-up placing and top-up subscription of shares of 800 million shares (the “Top-up Placing and Subscription Shares”) at HK$1.0 (the “Top-up Placing Price and the Top-up Subscription Price”).
The Top-up Placing and Subscription Shares represent (i) approximately 13.5% of the existing issued share capital of the Group; and (ii) approximately 11.9% of the enlarged shares capital comprising of 6,719 million shares.
The controlling shareholder of the Group currently holds 3,511 million shares, representing approximately 59.32% of the issued share capital of the Group. Subsequent to the completion of such transaction, it will hold approximately 52.26% of the enlarged issued share capital of the Group, which is the minimum-bearing level of controlling shareholder.
The net proceeds from the top-up subscription will be approximately HK$786.8 million, which will be used for expansion of the Group’s business in Hong Kong, Macau and the PRC and general working capital of the Group.
Ms. Cindy Yeung, Managing Director of Emperor Watch & Jewellery, said, “The prospects of the luxurious watches and jewellery retail market is very positive, harbouring the greatest demand for quality living style, and will continue to capture the increasing purchasing powers of the mainlanders. In order to facilitate our aggressive store expansion plan, we have to stock up sufficient inventory at competitive price level. The top-up placing will broaden the shareholders’ portfolio and provide additional working capital for the Group and therefore improve the liquidity and strengthen the financial position of the Group.”
The Top-up Placing Price and the Top-up Subscription Price have been fixed at HK$1.0 which represents (i) a discount of approximately 9.9% to the closing price of HK$1.11 per share as quoted on the Stock Exchange yesterday; (ii) a discount of approximately 8.9% to the average closing price per share of approximately HK$1.098 per share as quoted on the Stock Exchange for the last five consecutive trading days prior to yesterday.
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Emperor Watch & Jewellery announces Top-Up Placing & Subscription of Shares
19 April 2011
About Emperor Watch & Jewellery Limited
The Group is a leading retailer principally engaged in the sale of European-made luxurious watches, and self-designed fine jewellery products under its own brand, “Emperor”, with long establishment history of nearly 70 years. Through its extensive retail network in Hong Kong, Macau and China, comprehensive watch dealership and unique marketing campaigns, the Group established a strong brand image amongst its target customers ranging from middle to high income group from all over the world.
For more information, please visit: www.emperorwatchjewellery.com.
Ms Anna Luk, Investor Relations Manager
Tel: +852 2835 6783