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Amplefield in new S$15m loan, debt-to-equity deal with Citybuilders
CATALIST-LISTED investment holding company Amplefield Ltd has agreed to extend a new shareholder's loan of S$15 million to Singapore-incorporated property developer, Citybuilders Pte Ltd (CBS).
The company added after trading closed on Friday that it has also agreed to capitalise S$15.3 million of a previous shareholder's loan to CBS.
On Friday, Amplefield entered into a share subscription agreement for the partial capitalisation of the S$18.7 million shareholder's loan with Regional Connexion Ltd (RCL) and CBS.
Under the agreement, Amplefield will subscribe for 76.5 million new shares in CBS at S$15.3 million, but a balance of some S$3.4 million from the S$18.7 million shareholder's loan will remain outstanding and due to the investment holding company.
Amplefield will raise its stake in CBS to 75 per cent, up from 48.98 per cent previously, once the new shares subscription is completed. RCL's shareholding interest in CBS will reduce to 25 per cent, from 51.02 per cent.
RCL has agreed to relinquish control over CBS to Amplefield. CBS has also undertaken to repay the shareholder's loan of S$19.92 million extended by RCL within 18 months from the completion of Amplefield's share subscription agreement.
This share subscription agreement will supersede an earlier deal that Amplefield has signed with RCL on May 30, 2016.
Amplefield said that it has entered into the share subscription agreement after penning a joint development agreement with SingViet City Ltd for the turnkey design, funding, construction, marketing and sale of a 409-unit, 9.32-hectare mixed real estate development in Ho Chi Minh City.
Citybuilders (Vietnam) Co Ltd (CBVN), a wholly owned subsidiary of CBS, is involved in the provision of construction and construction management services in Vietnam.
Amplefield's executive directors, Yap Weng Yau and Phan Chee Shong are also directors of CBS. In addition, Woon Ooi Jin, an executive director of the company is also the general director of CBVN.