China Star appoints independent advisor over bond issue

    China Star entertainment said it has appointed Donvex Capital as financial advisor to the independent board committee and independent shareholders to assess a proposal to sell HK$405.00 million in convertible bonds to Mung Kin Keung, a co-chairman and executive director of the company.
    The company said earlier in July that it was raising a total of HK$538.50 million ($69.4 million) through the issue of subscription shares and convertible bonds to finance investments in gaming-related businesses in Macau and to fund the expansion of the Hotel Lan Kwai Fong Macau. It also appointed Hong Kong Airlines Chairman Mung as a co-chairman at the same time.
    The subscription shares are being bought by a company in which Mung holds a 22.8 percent stake. Should the bonds be fully subscribed and converted, Mung will hold about 31.16 percent of the existing share capital of China Star.