*Sellers could become major shareholders (Adds details)
HONG KONG, Sept 28 (Reuters) - Lighting manufacturer Bright International Group Ltd (1163.HK) 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.
The company will buy six gold mines in China's Hebei province, with a total mining area of about 5.3 square kilometers and containing gold reserves of about 204.04 tonnes, from Silver Mark Enterprises for HK$6.35 billion ($819.3 million).
It will issue HK$5.92 billion worth of convertible notes, HK$400 million in promissory notes and pay a HK$30 million deposit to Silver Mark for the assets.
Bright International also agreed to buy two gold mines with total reserves of 30.28 tonnes from Wingem Investments Ltd. It will issue HK$1.03 billion convertible in notes and pay HK$30 million cash for the mines.
For a company statement please click here (Reporting by Alison Leung; Editing by Jonathan Hopfner)
