Huarong Macau buys Carnival’s secured convertible bonds

The subsidiary of China Huarong Asset Management Co., Ltd. – Huarong Macau – is to purchase 6.5 per cent secured convertible bonds due 2020 issued by Mainland Chinese tourism developer Carnival Group, according to the latter’s filing with the Hong Kong Stock Exchange on Wednesday.
The subscription of Huarong Macau is worth HK$390 million (US$48.6 million).
The filing reads that the bonds can be fully convertible at the initial conversion price of HK$0.946 per share of Carnival Group, and the issued bonds will be convertible into some 412.2 million conversion shares, representing 2.44 per cent of the existing issued share capital of Carnival Group.
Huaron Macau was set up last December by its parent in the MSAR for developing a locally- based integrated financial services platform, with registered capital of Huarong Macau amounting to MOP233 million.
It provides business financial services in investment holdings, asset restructuring, mergers and acquisition advisory, corporate management as well as economic trade and risk management consulting.
Carnival Group is the only publicly listed operator from Mainland China which engages in large-scale integrated tourism, hospitality and retail attractions.