Sunpower to place up to 400m shares at 14 cents each

SUNPOWER Group said on Wednesday it has entered into a placement agreement of up to 400 million shares for Stirling Coleman Capital to procure subscribers at an issue price of 14 cents per share on a "best endeavour basis". This will raise gross proceeds of up to S$56 million.

Sunpower Business Group Pte Ltd (SBGPL) and Tournan Trading Pte Ltd (TTPL) have indicated their interest to the placement agent to subscribe for up to 100 million placement shares (up to 25 per cent of the total placement shares each).

SBGPL and TTPL are wholly owned by Allgreat Pacific and Claremont Consultancy respectively, which are in turn wholly owned by Guo Hong Xin and Ma Ming respectively.

Since Mr Guo and Mr Ma are executive directors of Sunpower Group while SBGPL and TTPL are considered associates, the proposed allotment and issue of placement shares constitute interested person transactions. The placement shares are subject to a lock-up period of six months.

A special general meeting will be convened to seek shareholders approval for the proposed transactions.