China’s Red Star Macalline asks consent to trim exchange price on bonds

By Mary-Katherine Stinson

Lexington, Ky., Jan. 13 – Red Star Macalline Holding Group Co. Ltd. convened its shareholders meeting to seek approval to reduce the exchange price of its RMB 4,109,400,000 outstanding exchangeable corporate bonds (first tranche) to RMB 8.44 per A share from RMB 10.59 per A share effective Jan. 18, according to a notice.

Should the proposal pass, the maximum amount of A shares exchangeable will be 248,220,000 shares. The sole subscriber of the notes, Alibaba (China) Technology Co., Ltd., has said in a letter of intent that it intends to exercise its exchange rights at the new exchange price to the extent permitted by law.

The bonds were issued May 14, 2019 in an original issue size of RMB 4,359,400,000 with the bonds being exchangeable into fully-paid A shares of the company listed on the Shanghai Stock Exchange. The issue was fully subscribed by Alibaba Technology.

The issuer is a Shanghai-based operator and manager of home furnishings shopping malls.

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