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Innopac extends long-stop date of placement, downsized to S$6.1m after investor pulls out

MAINBOARD-listed Innopac Holdings and nine individual investors have further extended to June 30 the long-stop date for the completion of a proposed stock placement, which was also downsized to S$6.1 million after a key investor pulled out.

The extension was given by way of supplemental letters executed by Innopac and the investors, the investment holding company said in an exchange filing on Wednesday. The long-stop date had previously been extended by three months to May 5.

Innopac said in the filing that Lim Soon Huat, executive chairman of Malaysia-listed Asia File Corp, has mutually agreed with Innopac to terminate their subscription agreement for the proposed share placement to him, with effect from April 24.

Mr Lim was set to be the second-largest investor, holding a 15.6 per cent interest in Innopac after the placement and becoming a controlling shareholder in the company.

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The current plan is for Innopac to place 6.1 billion new shares at 0.1 Singapore cent apiece to the remaining nine investors - for a total of S$6.1 million. That is down from last October’s initial proposal to place 8.4 billion new shares for S$8.4 million to the original group of 11 individuals.

Under the downsized proposed placements, the new shares will represent about 57.8 per cent of Innopac’s enlarged share capital, instead of 65 per cent as per the original deal.

Earlier in February, one investor had exited the deal with Yoong Kah Yin and the company mutually agreeing to let their subscription agreement lapse with effect from Feb 5.

The nine remaining investors are Choo Beng Kai, Lim Kai Seng, Poh Mei Huey, Teh Yew Wooi, Ooi Wey Chong, Tang Chi Hoong Darren, Ong Chin Kiong, Teow Chong Joo and Ong Gim Seong.

Mr Choo, managing director of Malaysian investment holding company Masmeyer Holdings, remains the largest investor in the stock placement. He will hold a 23.7 per cent stake in Innopac after the placement, thus becoming the company’s new controlling shareholder. The original agreement had been for Mr Choo to hold a 19.4 per cent stake post-placement.

Under the investors’ supplemental letters announced on Wednesday, Mr Teow will increase his investment by S$100,000 to S$500,000, by subscribing for 100 million more shares. As a result, he will subscribe to a total of 500 million shares.

Innopac shares have been suspended on the Singapore Exchange since June 7.