Wed, Jan 13, 2021 – 9:28 AM
GRAND Enterprise Know-how on Tuesday stated it has entered right into a conditional placement settlement to boost some S$23.6 million. The Catalist-listed manufacturing service supplier is proposing to subject 71.5 million new shares within the firm at S$0.33 apiece.
The settlement was entered into with placee NT SPV 12, a wholly-owned subsidiary of personal fairness fund, Novo Tellus PE Fund 2.
The position shares, when allotted and issued, will signify about 23.4 per cent of the agency’s enlarged share capital, leading to a switch of controlling curiosity.
Novo Tellus PE Fund 2 makes non-public fairness investments within the know-how and industrials sector of South-east Asia, with a concentrate on mid-market corporations, Grand Enterprise stated.
The difficulty worth of S$0.33 represents about an 18 per cent low cost to the volume-weighted common worth of S$0.40 per share primarily based on trades carried out on Jan 11, being the final full market day earlier than the position settlement was signed.
Internet proceeds from the position after deducting estimated charges and bills is about S$23.5 million.
The corporate intends to make use of 81 per cent, or the majority of this for growth by way of mergers and acquisitions. About S$3 million or 13 per cent of the proceeds can be used for investing and enhancing operational and engineering capabilities, whereas the rest can be used for basic working capital.
Completion of the proposed placement is conditional upon the approval of shareholders at a unprecedented basic assembly to be convened, and the itemizing and citation discover from the Singapore Change, amongst different issues.
In reference to the position, the placee shall be entitled to appoint one director for appointment to Grand Enterprise’s board, the corporate stated.
Individually, Grand Enterprise’s controlling shareholder Metalbank Singapore, has additionally entered right into a conditional sale and buy settlement (SPA) to promote some 19 million shares to the placee at S$0.33 per share for about S$6.3 million.
Metalbank Singapore holds a 57 per cent stake in Grand Enterprise and the sale shares signify about 8.1 per cent of the agency’s present share capital.
Completion of this SPA is conditional upon completion of the position settlement with the fund.
Taken collectively, the position shares and the sale shares will signify about 29.6 per cent of the agency’s enlarged share capital.
The position is deemed to be an particular person transaction, and consideration for the position shares represents about 80.1 per cent of the group’s newest audited internet tangible property worth of S$29.5 million as at Dec 31, 2019, Grand Enterprise stated.
Following this announcement, the corporate on Tuesday night time requested the lifting of a buying and selling halt it referred to as for earlier within the day earlier than the market open.
As at 9.10am on Wednesday, Grand Enterprise shares had been buying and selling at S$0.46, up S$0.07 or 18 per cent.