Sim Leisure enters into agreement to place out shares

Published Tue, Mar 24, 2020 · 02:25 PM

SINGAPORE-LISTED theme park developer and operator Sim Leisure Group announced on Tuesday that it has entered a subscription agreement with Malaysia-based food and beverage group Tropika Kiara for over 13.4 million new shares.

This comes as Sim Leisure looks to embark on expansion initiatives in Malaysia and overseas with the upcoming opening of the group's first indoor recreational centre at Paradigm Mall in Petaling Jaya by June 30. The move could also potentially give Sim Leisure "access to new markets, new customers as well as business opportunities".

Tropika Kiara will hold over 25.8 million shares, representing 17.5 per cent of the enlarged share capital of the company upon successful allotment and issuance of the shares.

The deal will see the Sim Leisure raising an estimated S$2.92 million in net proceeds from the subscription price at S$0.22 per share, the company said.

"The net proceeds are intended to be used for the funding of potential growth and expansion or diversification and general working capital of the company," it noted in its regulatory filing.

Sim Leisure shares closed flat at S$0.22 on Tuesday.