M&A Hong Leong to hold stake in Alam Maritim

by **Cals** Wed 23 Apr 2014, 22:37

M&A Hong Leong to hold stake in Alam Maritim

Business & Markets 2014

Written by Ho Wah Foon of theedgemalaysia.com

Wednesday, 23 April 2014 18:18

KUALA LUMPUR (April 23): Alam Maritim Resources Bhd announced that a Hong Leong unit and another firm have agreed to subscribe to 123 million new shares in Alam Maritim for RM166.05 million.

Their joint subscription will represent 15.35% of the existing shares in Alam Maritim.

In a filing with Bursa Malaysia, Alam Maritim said it had today entered into a subscription agreement with Associated Land Sdn Bhd and Caprice Capital Intl Ltd for the proposed issuance and allotment of 123 million new Alam shares, representing 15.35% of the existing paid-up share capital of the company, at an issue price of RM1.35 per unit.

Associated Land, an indirect subsidiary of Hong Leong Company (Malaysia) Berhad, will take up 60 million shares while Caprice Capital, controlled by Poh Yang Hong, will take up 63 million shares.

“The issue price of RM1.35 per subscription share represents a discount of 11.09% to the 1-month VWAMP of Alam shares up to and including 21 April 2014 of RM1.5184, being the last trading day prior to the suspension of ALAM Shares,” said Alam Maritim.

The company said the proceeds of RM166.06 million would be used for the acquisition of a new vessel and/or general working capital, repayment of bank borrowings and expenses in relation to the share issuance.

Alam Maritim said the exercise would enable the group to raise additional funds without having to incur interest expenses or service principal repayment to bank.