China Star appoints co-chairman, raises funds for gaming expansion

China Star Entertainment said it’s raising about HK$538.50 million ($69.4 million) through the issue of subscription shares and convertible bonds to finance investments in gaming-related businesses in Macau and to fund the expansion of the Hotel Lan Kwai Fong Macau.
The company also said it has appointed Hong Kong Airlines Chairman Mung Kin Keung as a co-chairman. The securities will be bought by a company controlled by Well Way, in which Mung holds a 22.8 percent stake.
China Star will issue 1.5 billion subscription shares at $0.09 a share, a discount of 28 percent to the closing price of the stocks on the Hong Kong Stock Exchange on July 8th. The shares represent about 9.41 percent of the enlarged capital.
Mung also agreed to subscribe to HK$405.00 million in convertible bonds to be issued in a maximum of five tranches and convertible at a price of $0.09 per share.
Should the bonds be fully subscribed and converted, Mung will hold about 31.16 percent of the existing share capital of the company.