MAINBOARD-LISTED Sino Grandness Food Industry Group announced on Thursday that Thai conglomerates Thoresen Thai Agencies (TTA) and PM Group will invest 9 per cent and 3.77 per cent respectively into it through a private placement of newly-issued shares.
The Shenzhen-based producer and distributor of food and beverage (F&B) products said that it has entered into two subscription agreements with the Thai entities to issue a total of 86 million new ordinary shares of the company to both subscribers at the placement price of S$0.61 per share.
Upon completion of the placement exercise, TTA shall become the second largest shareholder of Sino Grandness with a 9 per cent stake and one board seat. Prayudh Mahagitsiri, honorary chairman of TTA and the founder and chairman of PM Group, who is known as "the Coffee King of Thailand", shall be appointed as honorary chairman of Sino Grandness.
Sino Grandness explained that the transaction is not only to add equity funding to the high-growth company, but also to create a new partnership that aims towards new product developments as well as solid expansion into the South-east Asian market.