AusGroup to issue 141m new shares to Ezion at 5.8 Singapore cents each

AUSGROUP said on Monday that it plans to issue about 141 million new shares at 5.8 Singapore cents each to controlling shareholder, Ezion Holdings.

The transaction is related to the capitalisation of about S$8.2 million of the shareholder loan from Ezion.

When completed, the amount outstanding under the shareholder loan will be cut to S$34 million, from S$42.2 million. Ezion will end up with a 20 per cent of AusGroup's enlarged share capital, compared to 17.83 per cent of its issued share capital now.

AusGroup is proposing to issue a total of 482.8 million new shares to noteholders. The shares will represent 65.2 per cent of its issued share capital and 35.4 per cent of its enlarged share capital on completion of the transaction.