Plato Capital to issue S$10m of convertible stocks to controlling shareholder

PLATO Capital said it has entered into a subscription agreement with director and controlling shareholder Lim Kian Onn for the latter to subscribe for S$10 million of redeemable convertible unsecured stocks (RCULS) issued by the group.

In a filing to Singapore Exchange on Tuesday night, Plato Capital said the agreement was inked on Tuesday relating to the issue of RCULS due 2021 each with a principal value of S$100,000 and 0.5 per cent interest per annum.

This exercise is subject to shareholders' approval and Mr Lim obtaining a whitewash waiver from the obligation of making a mandatory general offer.

When the RCULS are fully converted, the aggregate number of converted shares and interest shares will represent 47.7 per cent of the existing issued share capital and 32.3 per cent of the enlarged issued share capital.

The proceeds are meant to fund the proposed acquisition of a 26 per cent stake in Bursa-listed ECM Libra Financial Group Berhad, where Mr Lim is also a director and substantial shareholder.