CSR delays meeting to raise funds
By Richard Fu |
August 4, 2011, Thursday
|
Print Edition
Print Edition
CHINA'S largest train maker CSR Corp has delayed a shareholder meeting to vote on its 11 billion yuan (US$1.7 billion) fund-raising plan following the fatal train crash last month in Wenzhou in Zhejiang Province.
CSR said it needs to discuss further with investors about the prospects of the railway industry after the accident, according to a filing to the Shanghai Stock Exchange yesterday.
It also hinted that the postponement was also due to volatility in United States treasury bonds which have affected market conditions adversely.
CSR has now rescheduled the meeting on September 29, instead of tomorrow as originally planned.
The company said in June it would sell up to 1.83 billion new shares at 6.02 yuan each in a private placement to its state-owned parent and China's national social security fund.
CSR has said the proceeds from the additional share sale would fund production and research.
But Chen Huiqin, a startegist at Nanjing-based Huatai Securities, said that the delay would cause CSR to cut its issue price, "which would definitely be lower than its current share price."
CSR said it needs to discuss further with investors about the prospects of the railway industry after the accident, according to a filing to the Shanghai Stock Exchange yesterday.
It also hinted that the postponement was also due to volatility in United States treasury bonds which have affected market conditions adversely.
CSR has now rescheduled the meeting on September 29, instead of tomorrow as originally planned.
The company said in June it would sell up to 1.83 billion new shares at 6.02 yuan each in a private placement to its state-owned parent and China's national social security fund.
CSR has said the proceeds from the additional share sale would fund production and research.
But Chen Huiqin, a startegist at Nanjing-based Huatai Securities, said that the delay would cause CSR to cut its issue price, "which would definitely be lower than its current share price."
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