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Oxley to hold 10% of Malaysian property group Aspen through placement exercise

MAINBOARD-LISTED Oxley Holdings has entered into a placement agreement with Aspen (Group) Holdings that will see Oxley hold about 10 per cent of the enlarged share base of the Malaysian-based property group.

In a filing with the Singapore Exchange on Wednesday evening, Oxley said that it will subscribe to an aggregate of 97 million new ordinary shares at an issue price of S$0.24 per share.

Therefore, the total consideration of the deal stands at close to S$23.3 million.

As at Dec 31 2017, Aspen had four ongoing projects under construction and four upcoming developments, all in Penang, with a total of 3,974 residential units across 423,091 square metres, commercial shop offices across 180,431 sq m and leasable retail spaces across 125,025 sq m.

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Its flagship development, Aspen Vision City in Penang, is a joint venture development with IKEA South-east Asia.

Said Ching Chiat Kwong, executive chairman and CEO, Oxley: "Strong partnerships with reputable local property developers have played an important role in Oxley's successful ventures overseas. This investment marks the strategic alliance between Oxley and Aspen for us to create synergies and grow the business in the Malaysian and regional property markets."

"I am confident that by leveraging Aspen's local expertise and strong partner network in the region, Oxley and Aspen's partnership in joint project development, property investment and other business opportunities will benefit both parties."

Oxley shares ended S$0.015 or 3.1 per cent lower at S$0.47 on Wednesday after the announcement.