BRIEF: Ocean Park sells controlling stake in $293 million share placement

Theme park operator Haichang Ocean Park Holdings Ltd. (2255.HK) said on Monday it has agreed to sell 5.1 billion new shares to Sunriver Group for HK$0.45 apiece, raising HK$2.3 billion ($293 million). The new shares will represent 38.6% of Ocean Park’s post-enlargement equity, making Sunriver Group its largest shareholder. The ownership stake of former controlling stakeholder Qu Cheng will be diluted to about 29%.

The placement price marked a sharp 46.4% discount to Ocean Park’s Monday closing price. The company will use the proceeds to bolster its core operations, retire partial liabilities, and support its daily operations. Ocean Park said the funding is needed as a result of its recurring operating losses, made worse during the pandemic, and complex external market conditions in recent years.

Sunriver Group focuses primarily on cultural tourism investment management with ownership positions in Zhejiang Sunriver Culture Tourism (600576.SH) and Anhui Gourgen Traffic Construction (603815.SH). Shares of Ocean Park opened flat at HK$0.74 on Tueday and continued to fall during the day, closing down 13.1% at HK$0.73. The stock is down around 30% from its 52-week high.

By Lau Chi Hang

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