Tontine Wines to raise HK$624 mln via private placement

China Tontine Wines Group Ltd<0389>, one of the leading grape wine producers in China, plans to raise HK$624 million via a private placement to replenish its working capital. Its shares were suspended from trading on Tuesday, sources reported.

Pursuant to a statement filed with the Hong Kong Stock Exchange, China Tontine Wines will issue 250 million shares to existing shareholders at HK$2.08 apiece, reflecting a discount of 8.8% to the closing price of HK$2.28 on Monday. The shares account for 14.87% of the firm's enlarged share capital.

The net proceeds may reach HK$595 million. China Tontine Wines has the option to issue up to additional 50 million shares at HK$2.08 apiece.