Photo by Gabriel M.

China Animal asked for a trading halt yesterday morning and released its announcement at close to mid-night.  The China Animal annoucement details its US$45mn fun raising with new strategic investor Blackstone Capital Partners VLP.

The management are viewing the placement to Blackstone Capital as another affirmation by a global fund house as to its fundamental merit.  China Animal already has Legg Mason, Fidelity and soon Blackstone as shareholders.  This affimation is important given the spate of S-chip scandals which has impacted all S-Chips (good and bad).  Overtime, the good ones will stand out via their track record, disclosure and how they treat minority shareholders.

The US$45mn fund raising from Blackstone is in the current form:

a) placement of  20mn new shares in China Animal at S$0.35

b) US$40mn convertible bond (CB) due in 2015

A summary of the CB terms is appended below:

a) US$40mn amount with zero coupon

b) completion expected by end of July 2010 with a long stop date in September 2010 (ie the deal expire)

c) Conversion price – there are a few conditions here. Read more…