Clifford Chance

Clifford Chance advises Shangri-La Asia on HK$4.9 billion rights issue

Leading international law firm Clifford Chance has advised Shangri-La Asia on its rights issue.

Shangri-La announced a 1 for 7 rights issue raising approximately HK$4.9 billion (approx. US$628 million). Shangri-La is listed on the Hong Kong Stock Exchange and has a secondary listing in Singapore. The rights issue was underwritten by the Kuok Group.  Applications from existing shareholders were received for approximately 75% of the shares on offer with the balance being taken up by the Kuok Group.

Shangri-La intends to use a substantial part of the net proceeds from the rights issue to repay Group bank loans to save interest costs. The remaining proceeds will be used as general working capital and to fund capital expenditure for ongoing hotels and development projects.  The Group will, however, subsequently and progressively continue to draw down bank loans to fund its ongoing development projects.  The Group has a substantial development pipeline with upcoming projects in Hong Kong, Mainland China, Indonesia, Mongolia, Myanmar, the Philippines, Sri Lanka and Ghana.

The Clifford Chance team was led by Roger Denny, Head of M&A Asia Pacific, supported by partner Neeraj Budhwani, senior associate Raymond Ng and associate James Yip and trainee solicitor Jeffery Hung.