China Southern prices CNY16 billion convertible bond | News

China Southern Airlines has announced pricing of an upcoming convertible bond issue that is set to raise CNY16 billion ($2.4 billion) for the carrier.

The bonds, convertible to mainland China-listed A-shares, will bear 0.2% interest in the first year, 0.4% in the second year, 0.6% in the third year, 0.8% in the fourth year, 1.5% in the fifth year and 2% in the sixth year, the airline says in a 12 October filing to the Hong Kong stock exchange.

China Southern A330

On 15 October, China Southern will issue 160 million bonds with a nominal value of CNY100 each. The issuance matures on 14 October 2026.

The initial conversion price for the shares is set at CNY6.24 per share and the conversion period runs from 21 April 2021 to 14 October 2026.

The number of converted shares will be determined by dividing the face value of bonds against the effective conversion price

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BASF Books $3.3 Billion Writedown on Aviation and Auto Slump

(Bloomberg) — BASF SE expects to book 2.8 billion euros ($3.3 billion) in writedowns largely driven by the aviation and automotive industries being slammed by the pandemic and hurting demand for its chemicals.

a car is lined up in a parking lot full of cars: Fiat Chrysler vehicles at a car dealership.

© Bloomberg
Fiat Chrysler vehicles at a car dealership.

The impairments will drag BASF to a third-quarter loss of 2.64 billion euros before interest and taxes, a worse result than analysts expected, the Ludwigshafen, Germany-based company said in a statement Friday.

The preliminary results send a troubling signal to those looking for signs of an industrial recovery. In addition to seeing weaker demand for coatings, the world’s largest chemical maker also suffered from continued oversupply in basic chemicals that weighed on prices.

Shares of the maker of lubricant additives, cosmetic ingredients and plastics dropped 2.6% as of 2:43 p.m. in Frankfurt.

BASF is predicting an improvement in the final three months of 2020. For the full year,

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BMW says Brexit could cost auto industry 10-11 billion euros

FILE PHOTO: The BMW logo is seen on a steering wheel during the media day of the 41st Bangkok International Motor Show after the Thai government eased measures to prevent the spread of the coronavirus disease (COVID-19) in Bangkok, Thailand July 14, 2020. REUTERS/Jorge Silva

FRANKFURT (Reuters) – BMW BMWG.DE Chief Financial Officer Nicolas Peter on Thursday said Britain’s separation from the European Union could cost carmakers and suppliers up to 11 billion euros unless cross-border trade remains tariff-free and unbureaucratic.

BMW has spent a low double-digit million euro amount this year to prepare for Brexit, Peter told journalists during a virtual roundtable discussion on Thursday.

“The auto industry association ACEA has estimated that it could cost carmakers and suppliers 10 to 11 billion euros,” Peter said.

“We need tariff-free trade. And even then, it needs to be seamless. We have a just-in-time manufacturing system so the administrative processing at

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EV battery maker Romeo Systems to go public through a $1.33 billion SPAC deal

(Reuters) – Romeo Systems Inc, a battery maker for electric vehicles, will go public through a merger with blank check company RMG Acquisition Corp in a $1.33 billion deal, the companies said on Monday.

The deal is expected to raise $384 million for Romeo, which includes an investment of $150 million from investors such as The Heritage Group and Republic Services.

Romeo will use the proceeds for capacity expansion and research & development to further develop battery system technologies for commercial vehicles, according to a statement.

After the deal closes, which is expected in the fourth quarter of 2020, the combined company will list on the New York Stock Exchange under the symbol “RMO”.

A SPAC is a shell company that raises money through an initial public offering to buy an operating entity, typically within two years.

SPACs have emerged as a quick route to the stock market for companies,

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France’s 5G frequency block auction fetches 2.8 billion euros

The first block of 5G frequencies has been auctioned off in France for nearly 2.8 billion euros, with the country’s biggest operator Orange taking the biggest share. Other companies who participated in the auction included Bouygues Telecom, SFR and Free.

The national telecom regulator Arcep had put 11 unused frequency ‘blocks’ on sale. These frequencies will be reserved for the fifth generation network services. The 5G networks, which are up to 100 times faster than the existing 4G network, are expected to roll out in some of the French cities by the end of 2020.

Thanks to its lightning fast data transfer speeds, it is expected to usher in new technological applications such as self-driving cars, IoT (internet of things) devices and remote surgery applications.

The French operators had already paid 350 million euros each for 50 megahertz of spectrum on the available frequency bands. “This was a successful auction,

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India To Offer $4.6 Billion In Incentives To Local EV Battery Makers

The Indian government plans to offer $4.6 billion in incentives to companies that establish battery manufacturing facilities for electric vehicles in the country.

A proposal drafted by the Niti Aayog think tank that is chaired by Prime Minister Narendra Modi reveals that the country could slash import bills by as much as $40 billion by 2030 if electric vehicles are to become widely adopted.

Reuters adds that this think tank has recommended incentives of $4.6 billion by 2030 for companies manufacturing batteries in the country. This would start with cash and infrastructure incentives of $122 million in the first financial year that would be ratcheted up annually.

Read Also: Not A Single New Car Was Sold In India Last Month

The plan would see India retain its import tax rate of 5 per cent for certain types of batteries, including those for electric vehicles, until 2022. After that date, it

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Nikola executives seek to calm investor anxiety after fraud claims delay $2 billion deal with GM, shares jump

Nikola Motor Company

Source: Nikola Motor Company

Nikola executives sought Wednesday to calm investor anxiety following fraud claims involving the company’s technology and its founder, Trevor Milton, who resigned as executive chairman last week.

Nikola Executive Chairman Steve Girsky and CEO Mark Russell said the company’s production timeline and factory plans remain on track, even as controversy over Milton’s departure appears to call into question Nikola’s $2 billion deal with General Motors that was scheduled to close Tuesday. While Russell acknowledged that the negotiations continue, he declined to discuss more details.

Girsky, in some of his first public comments since Milton’s resignation, said Nikola’s board remains “very supportive” of Russell and his team’s ability to achieve previously announced production targets.

“We’re excited about the vision. The vision excited a lot of people. The job now is about execution,” Girsky, a former GM executive, told CNBC during a phone interview Wednesday.

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GM extends talks on $2 billion deal with Nikola after fraud, sexual assault allegations surface against Trevor Milton

Nikola Motor Company Badger pickup truck

Source: Nikola Motor Company

General Motors and Nikola are not expected to finalize a $2 billion deal scheduled to close before Wednesday after allegations of fraud and sexual abuse surfaced against the embattled start-up’s founder and former executive chairman, Trevor Milton, according to two people familiar with the negotiations.

Executives at both companies are expected to extend the talks, the people said, asking not to be identified because the negotiations aren’t public. 

The deal was initially viewed as a no-lose situation for GM. The partnership would give the Detroit automaker an 11% stake in the company for supplying Nikola battery and fuel cell technologies as well as producing Nikola’s Badger pickup.

Shares of Nikola closed Tuesday down 7.4% to $17.88 – the stock’s lowest closing since the company went public on June 4. Nikola’s shares rose by more than 5% in after-hours trading. GM

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Why Cleveland-Cliffs is buying ArcelorMittal USA for $1.4 billion

Cleveland-Cliffs Inc. will buy the U.S. operations of ArcelorMittal SA for $1.4 billion in cash and shares to become the biggest flat-rolled steel producer in North America.

Ohio-based Cleveland-Cliffs expects its second major deal in less than a year to boost sales to the key automotive market.

Earlier this year, the global steel industry saw its biggest slump in production in a decade as demand from key consumers, including automakers, was hit hard by coronavirus lockdowns. The transaction is expected to close by the end of this year and will save the combined entity about $150 million in annual costs.

“Steelmaking is a business where production volume, operational diversification, dilution of fixed costs, and technical expertise matter above all else,” Cleveland-Cliffs Chairman Lourenco Goncalves said in a statement. “This transaction achieves all of these.”

Cleveland-Cliffs will pay about $873 million of common and non-voting preferred stock, and $505 million in

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