Oxley takes 10% stake in Malaysia's Aspen for S$23.3m
Both companies may jointly develop projects in Malaysia or co-invest in projects in the region
Singapore
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.
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 closed at S$0.485 on Monday, up S$0.005 or one per cent. Aspen closed at S$0.215, up S$0.01 or 4.9 per cent.
