March 1, 2012 / 2:16 PM / 5 years ago

Sinopec Kantons prices rights shares at 29 pct discount

HONG KONG, March 1 (Reuters) - Oil company Sinopec Kantons Holding Ltd said on Thursday it was offering shares in its HK$3.5 billion ($451 million) rights issue at HK$3.37 per share.

That represents a 29 percent discount to its closing price of HK$4.76 on Thursday. The company, which disclosed the information in a filing with the Hong Kong Stock Exchange, said it was issuing 1.04 billion shares, which would double the amount of shares issued in the company.

The company in December said it would issue the new stock to fund its 1.81 billion yuan ($288 million) acquisition of interests in five joint ventures from its parent China Petroleum & Chemical Corp (Sinopec) , which via a subsidiary owns 72 percent of Sinopec Kantons.

Shareholders who take up their rights will receive one new share for every existing share they own, with the offer open until March 16.

The rights shares will start trading on March 26.

Bank of America Merrill Lynch is the sole bookrunner and underwriter for the offering. ($1 = 6.2936 Chinese yuan) ($1 = 7.7557 Hong Kong dollars) (Reporting by Alex Frew McMillan; Editing by David Holmes)

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