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Gallant Venture proposes S$10.3m private placement to Moya managing director

GALLANT Venture is looking to issue S$10.3 million worth of new shares to Irwan Atmadja Dinata, managing director of Catalist-listed Moya Holdings Asia, at S$0.118 apiece.

The 87.3 million new shares will make up about 1.61 per cent of Gallant's enlarged share capital, excluding treasury shares.

The issue price of S$0.118 per share for the private placement represents a premium of about 1.69 per cent to the volume-weighted average price of S$0.116 for trades done on Thursday, the day the subscription agreement was executed.

The issue price was arrived at following arm's length negotiations between mainboard-listed Gallant and the subscriber.

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Mr Irwan is investing in the subscription shares in his personal capacity, Gallant said on Friday. Gallant also noted that Indonesian tycoon Anthoni Salim has a deemed interest of 72.84 per cent in Moya shares, as well as a deemed interest of 67.39 per cent in Gallant shares.

The new shares will be issued to Asia Cornerstone Fund SP, whose sole investor is Oakman International. Mr Dinata is the sole director and shareholder of Oakman.

Gallant will use the net proceeds of about S$10.2 million to repay part of the amount outstanding due in 2020 under its syndicated term loan.

Pending the repayment, the proceeds may be deposited in financial institutions or invested in short-term money markets or debt instruments, Gallant said.

The company will apply to the Singapore Exchange for the listing of and quotation of the shares, and will announce when in-principle approval has been obtained.

The counter closed up S$0.001 or 0.9 per cent to S$0.116 on Thursday.