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Swee Hong proposes issue of new shares to Singapore Infrastructure (Asia Pacific)

SWEE Hong has entered into a conditional subscription agreement with Singapore Infrastructure (Asia Pacific).

Under the terms of the agreement, Singapore Infrastructure (Asia Pacific) will pay S$8.025 million for the new shares and it will hold (as close as possible to but not exceeding) 29 per cent of the enlarged share capital.

Assuming the number of new shares issued is 535.0 million, the issue price of each new share will be S$0.015. This represents a discount of approximately 88.4 per cent to the volume weighted average price of S$0.129 for trades done on Feb 5, the last trading day prior to the suspension of trading.

The net proceeds of the proposed issue - about S$7.7 million - will be used for working capital requirements only.