Geely Car Spit 4% chairman placing old shares to buy new shares injection

The earlier announcement that Geely, which had not bought Volvo or Saab's brand plan, had a significant return to the market after releasing the placement news this morning, has dropped 4.14% to HK $1.39 and sold 17.98 million shares. The company announced that its chairman and controlling shareholder, Mr. Li Shufu, and his concerted action had allocated 800 million shares of old shares (12.34% of the company's existing share capital and about 11.34% per cent of the company's issued share capital) for a share of HK $1.35, with a total financing of HK $1.08 billion. Mr Li, after placing his old shares, subscribed to 570 million shares issued by Geely, which remained at HK $1.35 per share, and injected about HK $770 million into the listed companies. Mr Li's stake in Geely will fall from 57.98% to 50.04% after the above placements and subscriptions are completed. Listed companies, which earn about HK $750 million in net income, say they will be used for existing and future acquisitions and used for day-to-day operating capital.