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ASL Marine: No promise that controlling Ang family will fully take up rights warrants

OFFSHORE and marine group ASL Marine has clarified that its controlling shareholders, the Ang family, will not provide an irrevocable undertaking to fully subscribe for their entitlement of rights warrants.

This is despite having indicated their intention to fully subscribe for those warrants, which will be issued as part of a rights issue.

There is now no certainty that any or all of the Ang family members will subscribe in full for their pro-rata entitlement of rights warrants, ASL Marine said. (see amendment note)

As listed on ASL Marine's website, Mr Ang Kok Tian is chairman and managing director of the group, Mr Ang Ah Nui is deputy managing director and Mr Ang Kok Leong is executive director.

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ASL Marine's announcement on Thursday night said that the Ang family owns not less than 51 per cent of the group’s issued share capital for the time being and they continue to support the group and have "utmost confidence in the proposed transactions".

The company also noted that under certain debt obligations of the group, the Ang family and members of their respective families are required to maintain control in the shareholding of the company or management of the group.

ASL Marine also said the right issue will go ahead based on the authority granted by the share issue mandate passed by shareholders at the group's last annual general meeting on Oct 31, 2018. It had previously said specific approval for the rights issue would be sought from shareholders at an extraordinary general meeting.

The company said it received in-principle approval on Thursday from the Singapore Exchange for the listing of the rights issue of about 314.6 million warrants to shareholders, and an issue of 300.6 million warrants to noteholders of its series 006 notes and series 007 notes.

The rights warrants issue to shareholders and noteholders are part of the group's debt restructuring plan.

It will issue one rights warrant for every two shares owned, with each rights warrant having an issue price of S$0.006. ASL Marine shares closed down S$0.006 or 11.11 per cent at S$0.048 on Thursday.

For the noteholders, warrants will be issued on the basis of 462,500 noteholder warrants for every S$250,000 denomination of series 006 notes and 578,125 noteholder warrants for every S$250,000 denomination of series 007 notes.

Shareholders who are registered to own ASL Marine shares by June 28, 5pm, will be provisionally alloted right warrants for the shareholder exercise.

Amendment note: A previous version of this article wrongly stated ASL Marine's controlling Ang family did a U-turn on its intention to fully subscribe to a shareholder rights issue. It has been changed to reflect that the Ang family will not provide an irrevocable undertaking to fully subscribe for their entitlement of rights warrants instead.