Sun Century Group to raise HK$901.4 via rights issue

Hong Kong-listed Sun Century Group Ltd is seeking to raise ‘not less than approximately HK$901.4 million ($116.2 million) via a rights issue.

The group says it plans to use the majority of funds for the repayment of loans from third parties, but said a further HK$50 million will be used for the group’s business development plan and approximately HK$39.2 million will be for general working capital.

In August, the group’s acquisition of Suncity Group Tourism Ltd was finalized, with intentions to diversify its business to the tourism-related service business in Macau.

In its filing, Sun Century said “The Group intends to further expand the newly planned tourism-related business to other countries in the Asian markets, such as Vietnam and South Korea. The Group also plans to integrate its existing hotels and integrated resort management and consultancy service business with its new tourism-related service business, and provide consultancy, advisory, technical services for hotels or integrated resorts in places with rapid growth in the tourism industry.”