Hong Kong, Oct 16, 2014 - (ACN Newswire) - Hidili Industry International Development Limited ("Hidili" or the "Company" and together with its subsidiaries, the "Group," HKEx Stock Code: 01393), a conglomerate engaged in coal mining and washing in China, has announced that the tender offer and consent solicitation for purchase of its outstanding 8.625% Senior Notes due 2015 (the "Notes") have been obtained.
On 4 November 2010, the Company issued 8.625% senior notes due 2015 with an aggregate principal amount of US$400,000,000. The Notes are listed on the Singapore Exchange Securities Trading Limited. On 17 September 2014, the Company has appointed UBS as the sole Dealer Manager and Solicitation Agent for the Tender Offer and Consent Solicitation of up to an aggregate principal amount of US$228 million of the Notes. The Expiration Date of the Offer is 14 October 2014 New York City time. The Settlement Date is expected to be 21 October 2014, the fifth business day following the Expiration Date.
Holders who validly tender their Notes at or prior to 5:00pm New York time, on September 29, 2014 (the "Early Tender Deadline") for each US$1,000 principal amount of Notes tendered are entitled to receive (i) an amount in cash equal to US$680 (the "Early Tender Consideration") and (ii) an amount in cash equal to US$20 (the "Consent Payment"). Holders who validly tender their Notes after the Early Tender Deadline but on or prior to 11:59 of the Expiration Date will be entitled to receive an amount in cash equal to US$650 (the "Tender Consideration").
On 15 October 2014, The Company announced that, as at 11:59 P.M., Expiration Date: (i) US$197,249,000 of the Notes, had been validly tendered and not been validly withdrawn; and (ii) Consents from Holders with respect to US$325,161,000 of the principal amount of the Notes, representing approximately 85.57% of the total aggregate principal amount of the outstanding Notes (including Notes being tendered) in the Tender Offer and Consent Solicitation had been validly delivered and not been validly revoked. As such, the Company announces that the Requisite Consents have been obtained.
The Company has decided to accept for purchase all such Notes validly tendered (and not validly withdrawn) pursuant to the terms of the Tender Offer and the Consents validly delivered (and not validly revoked) pursuant to the Consent Solicitation. The Company expects to make payments in respect of the above on or about the Settlement Date. Preliminary book income is expected to be around $ 56 million.
Mr. Xianyang, Chairman of Hidili, said, "After the purchase of the Notes, the Company will be able to maintain a solid balance sheet and a strong financial position. Currently, small coal mines in China have basically terminated production and the government has restricted over- production in large coal mines, in particular those in Shanxi Province while increasing coal import tax, this reflects the government's determination to reduce domestic coal market supply, and help domestic coal enterprises turnaround. Due to above policies, the shortage of domestic coal, especially coke, has become acute. In the past two months, the price of coking coal in the area where Hidili operates has increased by RMB100, with a spot price of RMB550 per ton (tax included). The environment for our coal production becoming more favorable. Looking ahead, Hidili will focus on enhancing its capital management, optimizing capital utilization, improving the technology and management of mines, increasing production and strengthening efficiency of construction. Thus, we believe that the operation of Hidili is set to make further improvement."
About Hidili Industry International Development Limited
Hidili Industry International Development Limited, a conglomerate engaged in coal mining and washing in China, was listed on the main board of the Stock Exchange of Hong Kong in September 2007 (stock code: 01393.HK). A leading mining enterprise in Southwest China, through implementing its comprehensive capital, talent development, technological innovation, and industrial integration strategy the Company has developed core competitiveness in talent, technology, and resources. By leveraging this competitive advantage Hidili aims to become a leading resource utilization enterprise with considerable influence on domestic and overseas capital markets.
Source: Hidili Industry International Development Limited
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