BILLIONAIRE Oei Hong Leong is set to acquire a 20 per cent stake in printing and recycling specialist A-Smart Holdings : BQC 0% for S$5.37 million, A-Smart said in a bourse filing on Thursday (Dec 8).

This translates into an issuance of 29.8 million new ordinary shares to Oei at S$0.18 apiece, a 50 per cent premium to A-Smart’s closing price of S$0.12 on 6 Dec, 2022. 

The placement makes Oei a substantial shareholder, and also the second-largest shareholder after Chinese entrepreneur Ma Wai Dong, who acquired a 52 per cent stake in 2016.

When completed, the proposed placement will result in a transfer of controlling interest to Oei and will require shareholders’ approval at an extraordinary general meeting to be convened. 

The new shares to be issued will be subjected to a two-year moratorium from its issuance date. 

Oei sees A-Smart as an “ideal candidate” to tap the economic expansion of Timor-Leste’s resource-rich economy.

GET BT IN YOUR INBOX DAILY

Start and end each day with the latest news stories and analyses delivered straight to your inbox.

Sign UpVIEW ALL

“The young and resource-rich economy of Timor-Leste has been on my radar for some time. With the country’s eventual admission into Asean, I believe it will trigger a sustained period of economic expansion. Hence, A-Smart is identified as an ideal candidate given its groundwork established in Timor-Leste’s property market from as early as 2017,” Oei said.

A-Smart is set to start construction for a mixed-use development in Dili, the capital city of Timor-Leste, later this month. The project has an estimated gross development value of US$85 million and will be carried out through a 69-per cent-owned consortium.

The group has another plot of land in the country set aside for a high-rise mixed development in the future. It has also signed a memorandum of understanding with a local real estate company, Dili Development, to jointly develop a seafront resort in the capital city. 

A-Smart’s chief executive officer and executive director Lim Huan Chiang said: “The proposed placement brings a twofold benefit to A-Smart, one being the fresh capital to fund our working capital needs of property development projects in Timor Leste.”

“Other than that, the inclusion of a prominent businessman in Mr Oei Hong Leong as a strategic investor is much welcomed as he brings years of experience and an extensive business network to the equation.” 

A-Smart shares ended Thursday flat at S$0.121.