Oxley takes 10% stake in Malaysia's Aspen for S$23.3m

PROPERTY developer Oxley Holdings is taking a 10.07 per cent stake in Aspen Group for S$23.28 million, or 24 Singapore cents per Aspen share.

The per-share price for the 97 million Aspen shares represents a 14.72 per cent premium over the volume weighted average price of 20.92 Singapore cents for Aspen's stock on April 27, the last full market day prior to both parties signing the agreement on April 30.

Aspen is a property development group based in Malaysia with a focus on developing affordable residential and mixed development properties.

It will use the proceeds from the deal for acquiring land banks, future developments and working capital.

Looking ahead, Oxley said that both companies may enter into joint ventures to develop projects in Malaysia or co-invest in suitable property development projects in the region.

"We look forward to leveraging this partnership with significant collaborations with Aspen and their global partners in the region, that will benefit all parties," said Ching Chiat Kwong, executive chairman and chief executive of Oxley.

Aspen had a net asset value of RM286.3 million (S$96.62 million) as at Dec 31, 2017.

Oxley's counter was trading flat at S$0.48 apiece as at 12.53pm, while Aspen has requested a lift to its trading halt.