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Enviro-Hub to spend S$290m to acquire company-linked vehicles (Amended)
ENVIRONMENTAL management company Enviro-Hub Holdings plans to conduct a massive reorganisation of vehicles linked to it that will cost S$290.1 million for the group to acquire and will raise the stake of controlling shareholder Raymond Ng Ah Hua from nearly 40 per cent to about 69.5 per cent.
The bunch of acquisitions is in line with the group's plans to grow its property business by expanding its portfolio of investment properties and development properties, Enviro-Hub said on Wednesday.
It said it will pay the entire purchase sum by setting off S$4.69 million against part of an existing outstanding shareholder's loan that one of its acquisition targets owes to it and also by issuing about 2.85 billion new shares at S$0.10 apiece, an amount that is nearly three times the size of the current share base of 1.03 billion shares.
After the acquisitions are completed, it plans to do a 6:1 share consolidation to meet SGX minimum trading price rules, the group added.
Trading in Enviro-Hub shares was halted on Wednesday morning before the group announced the planned acquisitions, and had not resumed as at 1.45pm on Wednesday. The penny stock closed 0.4 Singapore cents down at S$0.056 on Tuesday.
An earlier version of this article incorrectly stated that Enviro-Hub will issue about 2.85 million new shares and has an existing share base of 1.03 million shares. In fact, these should be 2.85 billion and 1.03 billion respectively. The article above has been revised to reflect this.