Jilin Ji En Nickel Industry Co. Ltd. (600432.CN), a major nickel producer in China, is planning to raise 6 billion yuan (US$978.8 million) through a private share placement, the Shanghai Securities News reported Tuesday, citing a regulatory filing from the firm. The company will place a total of 787 million shares with Orient Fund Management Co. Ltd., Chang An Fund Management and Aegon-Industrial Fund Management Co. Ltd. at 7.62 yuan per share, it said. Proceeds will be used to repay some bank loans. Ji En Nickel had been borrowing heavily in recent years to fund its business expansion. The company’s debt-asset ratio stood at 85.63 percent at the end of September. After the share placement deal, the gearing ratio is expected to fall to 56.39 percent, according to the report.
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