Fong's buys back HK$35 million more of 0% convertibles due 2011

By Devika Patel

Knoxville, Tenn., May 19 - Fong's Industries Co. Ltd. announced it repurchased HK$35 million more of its outstanding zero-coupon convertible bonds due 2011 for HK$37,187,500.

This brings the total amount of the zero-coupon convertibles bought back this year to HK$80 million, or 10% of the HK$800 million the company had outstanding prior to its recent buybacks.

The company said on April 14 that it sought stockholder approval of a repurchase mandate, which would allow the company to buy back up to 10% of its HK$800 million of outstanding 0% convertible bonds due 2011.

Buying back the convertibles would allow Fong's to reduce the dilutive effects of potential conversions on shareholders, the company said.

The bonds were originally issued in principal amount of HK$800 million on April 19, 2006. The conversion price was initially HK$8.37 per share, but it was lowered to HK$7.62 on Oct. 26, 2007.

Fong's is a textile company based in Hong Kong.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.