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Orion Phoenix cuts AEM stake with share sale to institutional funds
MAINBOARD-LISTED equipment systems solutions and manufacturing services provider AEM Holdings said on Tuesday several long-only institutional funds had on Monday bought 2.7 million of its shares at S$2.70 apiece from its largest shareholder, Orion Phoenix.
As a result of the share sale, Orion Phoenix's shareholding of AEM's issued and paid-up shares will be reduced by about 4.2 per cent to 23.96 per cent.
Said Loke Wai San, the group's non-executive chairman: "Our investor relations efforts to educate the investment community on AEM's investment merits and its growth potential have been relatively successful. We welcome the expanding institutional shareholding support for our company as it often brings with it higher levels of scrutiny and demand for management accountability. It is a positive step in our longer-term goal for shareholder value creation through profitable growth."
Attracting institutional investors as new shareholders is part of the group's plan to institutionalise its shareholder base after embarking on a series of local and overseas road shows.