Quek and Poh emerge as substantial shareholders of Alam Maritim

by **Cals** Fri 25 Apr 2014, 02:03

Business & Markets 2014

Written by Levina Lim of theedgemalaysia.com

Thursday, 24 April 2014 10:18

KUALA LUMPUR: Tycoon Tan Sri Quek Leng Chan and Paul Poh Yang Hong, via their private vehicles Caprice Capital Intl Ltd and Associated Land Sdn Bhd, have emerged as substantial shareholders in Alam Maritim Resources Bhd with 123 million shares, or 15.35%.

In a filing with Bursa Malaysia, Alam Maritim said it had signed a subscription agreement with Caprice and Associated Land yesterday for the two companies to subscribe to 123 million new shares, representing 15.35% of Alam Maritim’s existing issued share capital, for RM166.05 million cash or RM1.35 apiece.

“The issue price of RM1.35 per subscription share was arrived at based on a willing buyer, willing seller basis after taking into consideration the prevailing market conditions and the one-month volume weighted average market price [VWAMP] of Alam Maritim shares,” it said.

The issue price represents a discount of 11.09% to the one-month VWAMP of Alam Maritim shares up to and including April 21 of RM1.5184, being the last trading day prior to the suspension of the shares. Alam Maritim’s share price closed 10 sen or 6.4% higher at RM1.65 on Monday. Trading was halted on Tuesday and yesterday pending this announcement.

The offshore vessel provider plans to use proceeds raised from the proposed share issuance to buy one unit of offshore support vessel and/or for working capital (RM67.17 million), to repay bank borrowings (RM95.08 million) and expenses related to the exercise (RM3.8 million).

Under the share issuance exercise, Associated Land, an indirect subsidiary of Hong Leong Company (Malaysia) Bhd, will take up 60 million shares, while Caprice, whose major shareholder is Poh, will take up 63 million shares.

Following the share issuance, Alam Maritim’s share base will increase to 924.46 million shares from 801.46 million shares. Its gearing will decrease to 0.67 from 1.05 currently. The earnings per share of the group is also expected to be diluted.

This article first appeared in The Edge Financial Daily, on April 24, 2014.