Sim Leisure to raise S$3.6m through sale of new shares

THEME park operator and developer Sim Leisure Group on Wednesday said it plans to sell new ordinary shares to two of its controlling shareholders at a discount of 5.9 per cent, to raise S$3.6 million.

One of the subscribers is the company's non-independent non-executive director Tan Boon Seng. His stake will increase to 26.95 per cent of the enlarged share capital, from 18.18 per cent if the proposed share subscription is completed.

The other controlling shareholder is Desamal Capital, an associate of Mr Tan's, which will see its stake rise to 25.74 per cent of the enlarged share capital, from 17.5 per cent. Desamal Capital will subscribe for a majority of the newly issued shares, paying S$3.4 million out of the S$3.6 million.

Both shareholders have agreed to subscribe for a total of 17.7 million new shares at 20.5 Singapore cents apiece - which represents a 5.9 per cent discount to the company's volume weighted average price of 21.78 Singapore cents, based on trades done on Sept 1 - the last full market day before the subscription agreement was signed.

Some 70 per cent from the proposed subscription will be used to fund the group's potential growth and expansion or diversification. The remaining 30 per cent will be used for general working capital.

Sim Leisure said in light of present market conditions, there are limited financing options available to the group. It will convene an extraordinary meeting to seek shareholder approval for the proposed subscription.

A NEWSLETTER FOR YOU

Tuesday, 12 pm

Property Insights

Get an exclusive analysis of real estate and property news in Singapore and beyond.

Sign Up

Desamal Capital is an investment holding company that owns businesses in food and beverage (F&B), tertiary education and personal grooming products.

F&B brands it owns include Dragon-I, Canton-I, Ho Min San and the Japanese franchise Yayoi. At present, it has about 40 restaurants spread over Peninsular Malaysia and the state of Sabah.

It also owns the Advance Tertiary College which has one campus in Kuala Lumpur and another in Penang, as well as personal grooming brands Bad Lab and Good Virtues.

Shares of Catalist-listed Sim Leisure ended 2.2 per cent or 0.5 Singapore cent lower at 22 cents on Wednesday, before the announcement.