Global Yellow Pages to fund land purchase through share placement worth S$5.25m

SINGAPORE-LISTED Global Yellow Pages Ltd says it has on Sunday entered into a placement agreement to raise S$5.25 million, which it intends to use to fund the purchase of land in Queenstown, New Zealand.

Under the agreement, the two placees - Yong Yin Min, non-executive director of Pacific Radiance Ltd and Thomas Riber Knudsen, chief executive of Damco Asia - will subscribe for more than 34 million new ordinary shares in the group's capital at an issue price of S$0.154 per placement share.

Global Yellow Pages said in a filing to the Singapore Exchange on Sunday night that there is no placement agent appointed for the proposed placement.

The placement shares represent about 19.5 per cent of the existing issued and paid-up share capital of the company comprising 175,024,682 shares (excluding 914,271 treasury shares).

Assuming that all the 34 million placement shares are issued, on completion of the proposed placement, the number of issued shares in the share capital of the company will rise to 209,100,682 shares and the placement shares will represent about 16.3 per cent of the enlarged share capital.

The company said that it intends to use all of the net proceeds for the proposed acquisition of land in Queenstown, New Zealand as it had announced in May. In the event the board chooses not to do so, it noted that the net proceeds would be used for general working capital of the group.

In May, the company had said its subsidiary had entered into a deal to buy the land for NZ$19.2 million (S$19.1 million) and had intended to develop it into residential properties for sale.