Asia-Pacific Strategic Investments to issue 2.6bn new shares to Oei Hong Leong
CATALIST-LISTED Asia-Pacific Strategic Investments Ltd (APSIL) has announced that it has agreed to place out 2.6 billion new shares at S$0.0054 each to Oei Hong Leong to raise S$14.2 million.
As at 3.25pm, APSIL's counter was the most active on the Singapore Exchange (SGX) with more than 55.3 million shares changing hands.
The move to raise gross proceeds came at the same time APSIL announced in a separate filing to SGX that it had on Monday entered into a proposed deal to acquire a Chinese real estate firm for S$33.3 million.
China Real Estate Development Union Investments (CREDUI), a pioneer in the Chinese property market, holds a 90 per cent stake in this Chinese firm. The remaining 10 per cent is held by CREDUI's 60 per cent-owned subsidiary, an investments advisory and portfolio management company based in China.
The proposed acquisition would result in a reverse takeover (RTO) of APSIL if it goes through.
The acquired firm will become APSIL's wholly-owned subsidiary, while CREDUI and its subsidiary will hold about a 28 per cent stake in APSIL, based on the enlarged share capital after completion of the deal.
Both the RTO and private placement deals will require the approval of shareholders.
APSIL said 80 million yuan (S$17.5 million) of the consideration will be paid in cash while the remaining will be paid through the issue of new APSIL shares representing 28 per cent of the enlarged share capital of the company on the completion date.
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