06-02-13 - Paul Y. Engineering Completed the Placing and Acquisition

Paul Y. Engineering Group Limited (“PYE” or “the Group”) (0577.HK) announced that PYE has completed the proposed placing of PYE shares and convertible bonds (“Placing”) and acquisition of Falloncroft Investments Limited (“Falloncroft”) with a plot of land in Cotai Strip, Macau (“Acquisition”).

The Placing successfully raised gross proceeds of HK$3.2 billion. An aggregate of 2,938,236,000 shares at HK$0.68/share which raised gross proceeds of HK$1.998 billion and an aggregate of HK$1.202 billion worth of convertible bonds (“CB”) at face value have been allocated by CLSA Limited to not less than six placees. The issued share capital of PYE, as enlarged by the Placing shares, is 3,545,190,322 shares. Upon full conversion of the Placing CB at HK$0.68/share, the issued share capital would be 5,312,837,380 shares.

The Acquisition of Falloncroft has also been completed. Falloncroft has exclusive contractual rights in respect of a 65,000 sq ft land parcel located on the Cotai Strip in Macau, on which a 945,000 sq ft super luxury exclusive hotel, casino and retail complex is proposed to be built. The construction of the project is scheduled to commence in 2013 and the complex is expected to open for business in 2016.

As the completion of the Acquisition has successfully been funded from the Placing alone, PYE has decided not to proceed with the contingent placing. The fund raised through the Placing by PYE is sufficient to commence construction of the hotel and other aspects of the project.

The appointment of Mr. Stephen Hung and Mr. Peter Coker as Executive Directors and Joint Chairmen of PYE and Mr. Walt Power as an Executive Director and Chief Executive Officer of PYE has taken effect from today upon completion of the Acquisition. Ir James Chiu, an Independent Non-Executive Director has stepped down as Chairman and Ir Dr Stanley Wong, an Executive Director, has stepped down as Chief Executive Officer of PYE.

PYE anticipates completing the distribution in specie (and implementing arrangements to complete the cash alternative and any excess applications for shares in PYE BVI) and effecting the cash dividend and scrip alternative on 12 March 2013.