China Unicom (0762.HK, 600050.SH, CHU.NYSE) has announced the sale of US$1.8 billion in convertible bonds, Reuters reported. In a statement to the Hong Kong stock exchange, it said the bonds are convertible to shares for up to five years at a price of HK$15.85 (US$2.04), a 35.5% premium over Unicom’s most recent Hong Kong closing price of HK$11.70. The bonds represent the equivalent of 900 million shares, about 3.82% of Unicom’s listed share capital, should there be full conversion. Unicom was originally seeking a conversion price in the range of HK$15.56 to HK$16.15, putting the final price squarely in the middle of its target. Unicom’s statement indicated the funds would be used for working capital. The bond offer was jointly lead managed by China International Capital, Goldman Sachs (GS.NYSE) and Nomura.
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