Yangzijiang

Yangzijiang: proposes to issue 330m warrants at an issue price of Rmb 0.3072 ($0.0605 @ exchange rate of Rmb 5.078/S$1). The exercise price is Rmb 7.617/sh ($1.50), representing a premium of 36.4% to YZJ’s last closing price at $1.10. The warrants, which will not be listed, are expected to be issued 15 Feb 2013 and will expire 29 Apr 2016. On full conversion, dilution is 8.6% of the existing share base. The net proceeds from the warrant issue will be ~Rmb 92.2m ($18.2m), to be used for working capital. The proceeds arising from the exercise of the warrants (Rmb 2.5b, or $495m on full conversion) will enhance the capital base and provide additional financial flexibility for the group to facilitate future mkt expansion and explore potential devt opportunities. Citi is the placement mgt and underwriter.