Lighting manufacturer Bright International said it would buy gold mines in China for a total of HK$7.41 billion ($956 million) to tap rising prices of the precious metal.

The firm would issue convertible notes and promissory notes, and pay cash to purchase the gold mines in China’s Hebei and Shandong provinces from two companies, it said in a statement late on Sunday.

Competition in the lighting products business has been keen and the company was seeking new investment opportunities to increase the value of the firm and  improve shareholder returns, it said.

“Gold, being a scarce precious metal, has very high commercial value and the value and demand for gold are very stable despite the recent global economic fluctuations,” it added.

Bright International said if the convertible notes issued to fund the purchases were fully exercised, sellers Silver Mark Enterprises Ltd and Wingem Investments Ltd would own 79.93 percent and 13.91 percent of the company, respectively.

Categories: Money, US Markets
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