Thakral funds Osaka property investment with 1.54b yen JV share issue

THAKRAL Corporation's joint venture (JV) has increased its share capital by some 1.54 billion yen (S$19.1 million) to 1.6 billion yen to finance its stake purchase in an office building in Japan.

All proceeds from the share issue were used for the investment, Thakral Corp said on Monday night. The JV, Thakral Umeda Properties (TUP), issued and allotted an additional 15.4 million shares at 100 yen apiece.

Thakral Corp earlier announced on Monday morning that TUP had invested an undisclosed amount to take an undisclosed stake in the 11-storey Umeda Pacific Building in Osaka.

The amounts received from Thakral Corp and other investors for the TUP share issue were proportionate to their existing shareholdings in the JV. These other investors include certain entities controlled by the Thakral family as well as third-party investors unrelated to the family or their associates.

Thakral Corp and its subsidiaries maintained their direct holdings totalling about 79.1 per cent in TUP after the share issue.

Their subscription to the JV's shares is not expected to have a material impact on the consolidated net tangible assets per share and consolidated earnings per share of the group for the financial year ending Dec 31, 2019.

Thakral Corp shares rose 0.5 Singapore cent or 1 per cent to close at 50 cents on Monday, before this announcement.