KVB Kunlun Financial Group Ltd (HKG:8077), the Hong Kong-focused retail Forex broker, today announced the issue of 21,320,000 shares, taking its total issued share capital to 2,021,320,000 shares.
In the announcement, the Board of directors said an aggregate of 21,320,000 new KVB Shares were allotted and issued on April 1, 2015, following the exercise of certain KVB Options. The latter were granted under the share option scheme from June 3, 2013. The exercise price was HK$0.414 per KVB share, which represents a 72.58% discount on the share price at market close on the preceding day (HK$ 1.51).
Details (see table below) in a separate company announcement show that 18,120,000 of the share options were exercised by shareholders other than directors, whereas 3,200,000 were exercised by directors of the company.
The announcement is important as it leads to a change in the size of the total issued share capital of KVB Kunlun. Thus, it is in relation to possible unconditional mandatory cash offers by CITIC Securities Corporate Finance (HK) Limited on behalf of CITIC Securities Company Limited (SHA:600030) to acquire all the issued KVB Shares (other than those already owned or agreed to be acquired by CITIC Securities and parties acting in concert with it) and to cancel all the outstanding KVB Options. LeapRate has been keeping you up to date with the latest developments around the KVB-CITIC deal, which already saw the Chinese financial conglomerate acquire a 60% stake in the broker.
To view the official announcement by KVB Kunlun on the share issue, click here.