Capital Strategic Investment 0497

Capital Strategic Investment 0497

Postby winston » Tue Nov 17, 2009 6:28 am

CSI draws in Templeton by Derek Yiu

Templeton Asset Management has invested HK$78 million in convertible notes issued by Capital Strategic Investment (0497), drawn by its business model and management capability.

Upon conversion, its Templeton Strategic Emerging Markets Fund will hold 3.6 percent of the enlarged share capital of CSI, which is a property investor.

At 25 HK cents per share, the conversion price represents a 15.7 percent premium over CSI's closing price of 21.6 HK cents yesterday. The notes are due 2012 at an interest rate of 4 percent per annum.

"The unique property repositioning model and CSI's execution ability have successfully unlocked the true value of properties and created value for its shareholders over the past few years," Templeton Asset Management executive chairman Mark Mobius said.

CSI chairman Mico Chung Cho-yee believes the introduction of an international investor will improve its publicity and financing ability, and said Templeton will consider increasing its stake. Shanghai's growth is higher than the national average, prompting the firm to transfer local capital to the growing investment property market in the city, Chung added.

CSI has a commercial complex in Shanghai's Hongkou district and a mall in Jing An district. "Our target is to equally split our investments between Hong Kong and Shanghai," he said. "Shanghai now accounts for just 25 to 28 percent, so we hope to raise our effort in the realty market there." ... 91117&fc=2
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Re: Capital Strategic Investment 0497

Postby Doug1 » Fri Dec 18, 2009 6:22 pm

This is interesting development for CSI. There are now three different and very reputable value funds that are substantial shareholders. 3rd Avenue and Value Partners being the other two. Hopefully this will unlock the share price underperformance so far.

Interim results to be out soon.

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