by Staff Writers
Shanghai (AFP) Jan 12, 2012
CSR Corp, whose state-owned parent made the bullet trains involved in July's deadly crash, said it will raise up to 9.0 billion yuan ($1.4 billion) in a private placement of shares.
Money raised from the issue of around 1.96 billion A shares will be used to fund the development of new products and upgrade manufacturing, maintenance and after-sales services, CSR told the Hong Kong stock exchange late Wednesday.
The offer has been approved by the China Securities Regulatory Commission.
CSR Corp is listed in Shanghai and Hong Kong, but A shares are aimed at domestic investors and denominated in China's yuan currency.
The company's parent, CSR Group, will buy 6.0 billion yuan worth of the planned offering, according to a proposal released earlier by the firm.
The share issue comes amid reports that rail companies are struggling for funds in the wake of last year's train accident, which killed at least 40 people near China's eastern city of Wenzhou.
CSR officials bought back shares in August to help support the company's battered stock price, the official Xinhua news agency has reported.
Shares of the company were up 0.22 percent at 4.51 yuan in Shanghai trading on Thursday.
In an accident report released last month, China said design flaws and poor management were to blame for the fatal high-speed rail crash, which sparked public fury.
The government said 54 people would be punished for the disaster.
Great Train Journey's of the 21st Century
Comment on this article via your Facebook, Yahoo, AOL, Hotmail login.
Chinese New Year travellers overload ticket system
Beijing (AFP) Jan 4, 2012
A new online system designed to make it easier for people to buy train tickets home for the Lunar New Year is struggling to cope with huge demand from millions of travellers across China. The week-long holiday, also known as the Spring Festival, is the world's biggest annual migration of people as more than 200 million board trains and buses across the vast nation to celebrate with their fam ... read more
|The content herein, unless otherwise known to be public domain, are Copyright 1995-2012 - Space Media Network. AFP and UPI Wire Stories are copyright Agence France-Presse and United Press International. ESA Portal Reports are copyright European Space Agency. All NASA sourced material is public domain. Additional copyrights may apply in whole or part to other bona fide parties. Advertising does not imply endorsement,agreement or approval of any opinions, statements or information provided by Space Media Network on any Web page published or hosted by Space Media Network. Privacy Statement|