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Landing taps investors for $831m, in part for Jeju project

Landing International is seeking to raise $6.44 billion ($831 million) net through a rights issue, in part to fund the next stage in the development of its project on Jeju Island, South Korea.

The Hong Kong-listed company is selling 18,696,253,870 shares at $0.35 each, a discount of some 75.8 percent to the closing price prior to the announcement. The stock will be offered on the basis of one share for every 10 already held.

To bolster the company’s share price and reduce stock exchange transaction costs, Landing also said it plans to consolidate its shares folding every 10 existing shares of nominal value of HK$0.01 into one share with a value of HK$0.10 each.

The company plans to allocate HK$4.46 billion of the proceeds of the rights offering to its share of the development costs for the Jeju resort. It also plans to allocate approximately HK$227 million for the construction and establishment of a training centre on the island.

Landing, which is developing the project with Genting Singapore, said Landing Jeju has now received the building permits granted from the Jeju government for zones A and R of the land.

The integrated resort will have a gross floor area of approximately 306,763 square meters comprising premium hotels, conferencing and exhibition facilities, a theme park, a casino and shopping and other entertainment and tourism facilities.The earthwork has been started and the construction work for the accommodation facilities and the hotels and theme park are expected to commence in mid-2015 and early 2016 respectively. Landing Jeju is now inviting tenders for the construction works.

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