Mirach Energy proposes placement of 28.56m shares to six investors

MIRACH Energy, which is on the Singapore Exchange watchlist, has proposed placements of a total of 28.56 million new ordinary shares to six individuals for an aggregate consideration of S$4.28 million, it announced on Thursday after the market closed.

The proposed placements aim to raise funds partly to pay the vendors of Malaysian plantation company RCL Kelstar Sdn Bhd, in which Mirach is to take a 70 per cent stake under a conditional agreement signed in July; and partly to increase the company's general working capital. The expected net proceeds of S$4.14 million will go towards these two purposes.

On Dec 27, Mirach entered into six separate conditional share placement agreements with a placement price of 15 Singapore cents per share, representing a premium of about 29.3 per cent to the volume weighted average price of 11.6 Singapore cents for trades that day.

Mirach said the placees "are all individual private investors who have expressed their interest in taking up new shares in the company for investment purposes". One placee, Chen Cheng Yuan, is to receive 9.75 million placement shares, translating to a 4.21 per cent stake assuming that all placement shares are successfully allotted and issued. The other five will receive 3.76 million each, translating to a 1.62 per cent stake each.

The shares are intended to be issued pursuant to the general share issue mandate granted by shareholders at the company's annual general meeting on April 26, 2018.