Business Times: Thu, Aug 02
KOON Holdings intends to buy four properties in Malaysia belonging to two controlling shareholders and their family members.
The $17 million consideration will be funded by a proposed three-for-five rights share issue, the construction and civil engineering group said.
Koon plans to develop the four properties in Johor Baru for sale as commercial units.
In an announcement yesterday, Koon said that it has entered into a letter of intent to buy four Malaysian investment holding firms which own the four properties. The seller is Ang Sin Liu Construction, a firm privately held by members of the Ang family including Koon's non-executive chairman Ang Sin Liu and non-executive director Ang Ah Nui. Their board appointments were made in April this year.
The father-and-son duo, together with other family members, hold the largest stake in Koon at 29.1 per cent.
Koon said the proposed development will involve various business units of the group, such as the real estate division and the furnishings, pre-cast and construction divisions.
The definitive terms of the sales and purchase agreement are still being negotiated, Koon added.
Koon - which is listed in Singapore and Australia - has proposed the non-renounceable, non-underwritten rights issue to raise at least $17.7 million, and up to $18.4 million, for the property purchase. The issue involves the sale of up to 98.5 million new shares at 19 cents each. Koon shares were last traded in Singapore at 20 cents each on July 25.
The Ang duo have undertaken to subscribe for their portion of the right shares in full.
The right shares will not be offered to shareholders whose registered addresses are outside Singapore, Australia, and New Zealand.
Koon said this came after a review of the number of shareholders outside of these three countries, and the compliance cost involved in extending the rights issue to shareholders in each country.
The acquisition and rights issue are subject to the approval of independent shareholders at an extraordinary general meeting to be convened.
Martin Koh | 86666 944 | R020968Z
Sherry Tang | 9844 4400 | R020241C
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