Tianjin Teda ,a company which derives about half its revenue from the sales of chemical products, plans to sell its 100 percent stake in Tianjin Teda Garden Construction to effective controller, Tianjin Teda Investment Holding, for 315.18 million yuan, reports yicai.com, citing a company filing.
Tianjin Teda said the aim of the planned stake disposal was to focus on its main business, and it will invest the proceeds to increase the capital of Bohai Securities.
Bohai Securities will issue one billion shares to existing shareholders at 1.5 yuan per share, boosting its total equity to 4.23 billion shares.
Tianjin Teda will spend 406 million yuan to subscribe to 270 million shares, and will subscribe to the shares that are not taken up by the other shareholders.
Should the proposed private placement succeed, Tianjin Teda predicts its stake in the brokerage will increase from 27.04 percent to 27.74 percent.
At present, Tianjin Teda Investment Holding is Bohai Securities’ largest shareholder.
