mm2 Asia chairman subscribes for S$6.1 million worth of rights shares

MM2 Asia : 1B0 0%’s chairman has paid S$6.1 million to participate in the media and entertainment company’s one-for-two rights issue at S$0.02 per rights share which shareholders approved at an extraordinary general meeting (EGM) on Friday (Dec 22).

In a bourse filing on Friday night, the company said Melvin Ang made the payment following his intention to fully subscribe for more than 307 million rights shares. He had indicated that he does not intend to apply for any excess rights shares. 

The renounceable rights issue – priced at S$0.02 for each rights share on the basis of one rights share for every two existing ordinary shares – was announced in September. 

The company had said it intends to use the rights issue to “position for future growth”, including deleveraging its financial position and funding growth opportunities in media and entertainment in Asia.

Two substantial shareholders – tycoon Oei Hong Leong and ‘Popiah King’ Sam Goi Seng Hui – had given irrevocable undertakings in respect of the rights issue.

The company thus noted that it could raise some S$27.3 million under a “minimum subscription” scenario, and some S$34.9 million under a “maximum subscription” scenario.

GET BT IN YOUR INBOX DAILY

Start and end each day with the latest news stories and analyses delivered straight to your inbox.

Sign UpVIEW ALL

At Friday’s EGM, 99.77 per cent of shareholders voted to approve the transfer of controlling interest to Oei and Goi, on top of approving the renounceable rights issue. Both men abstained from voting in respect of the resolutions relating to them.

Shares of mm2 Asia closed 3.2 per cent higher at S$0.032 on Friday.