Global Strategic Holdings Corp (GSH) is gearing itself for further inroads into the Chinese property and construction sector with its latest round of capital‐raising.

The distributor of medical consumer goods and photographic and imaging equipment yesterday unveiled plans to raise another $246.8 million in net proceeds through a rights issue.

This, just two weeks after the Lippo group's Golden Super Holdings and a private‐equity fund, SkyVen Growth Opportunities Fund, invested $37.54 million in GSH via a stock placement, most of which
will go towards prospective merger and acquisition (M&A) opportunities.

The latest rights issue assumes the completion of this stock placement.

At the EGM this week, GSH shareholders unanimously passed a resolution for the group to branch out from its core businesses into property development, investment and management, as well as building construction, and the manufacture and sale of construction materials in China.

On the proposed rights issue, GSH said: "The company has an inorganic growth strategy to increase the breadth and depth of the business of the group through M&As and been exploring opportunities in the property development, construction materials and construction industries."

It added that the rights issue would strengthen its financial capacity and flexibility to seize expansion opportunities when they arise, in particular property development opportunitiesin Longhai City Nanxi
WanNew City in Zhang‐zhou City, in China's Fujian Province. The renounceable and non‐underwritten issue of up to 4.94 billion rights shares priced at 5 cents apiece will be on the basis of one rights share for every ordinary share held. The issue price is a 42.5 per cent discount to the stock's theoretical ex‐rights price of 8.7 cents pershare, based on its closing price of 12.4 cents on Tuesday.

Source: AmFraser