China Rongsheng Heavy Industries Group Holdings Ltd. announced that they have agreed to issue convertible bonds to raise capital. China Rongsheng Heavy Industries Group Holdings Ltd. said that they will issue bonds to Action Phoenix Ltd , a member of the VMS Investment Group. The company said that they are expecting HKD1.38 billion or US$178 million worth of net proceeds from the sale of the convertible bonds.
China Rongsheng Heavy Industries Group Holdings Ltd said in July that they were seeking assistance from the government after a plunge in orders which forced the company to reduce production and to restructure the company's workforce. China's largest outside of state control said that Chinese shipmakers are struggling with the excess in supply which makes orders more challenging to win and which pushes down trading prices.
"The sale represents an opportunity to enlarge and diversify the shareholder base of the company, to improve the liquidity position," Rongsheng said. "Should all the bonds be converted, Action Phoenix will own 16.67 percent of the enlarged share capital of the company."
VMS Investment Group is mainly engaged in asset management, proprietary investments, corporate finance advisory services and securities brokerage.
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