Mar. 18, 2010 (China Knowledge) - Kiu Hung Energy Holdings Ltd<0381>, which was formerly known as Kiu Hung International Holdings Ltd, has announced that it intends to acquire a 19.99% stake in First Dean Holding, a coal firm based in Mongolia, for HK$1.4 billion.

The Hong Kong-listed firm will pay HK$3.58 million in cash and will pay HK$209.2 million by issuing 523 million new shares at a price of HK$0.4 apiece, a price 33.3% more than its closing price of HK$0.3 before shares were suspended from trading. The new shares will account for 10% of the enlarged capital.

The purchaser will pay the remaining HK$1.22 billion by issuing two batches of convertible bonds.

Reportedly, Kiu Hung Energy Holdings has appointed Zhang Qifeng as the CFO. Lin Jisheng has resigned from his post as board secretary but will remain the executive director.

Source: China Knowledge