Semiconductor equipment maker AEM Holdings yesterday said it has been informed that its largest shareholder, Orion Phoenix, a single-purpose vehicle controlled by private equity fund Novo Tellus PE Fund I, is distributing most of its shares in AEM in specie to the limited partners (LPs) of the fund.
A total of close to 8.7 million shares of AEM, or 12.89 per cent of issued shares, are being distributed to 13 partners.
"The willingness of the fund's LPs to take up AEM shares demonstrates the strong confidence these investors have in AEM's potential and business outlook," AEM said.
As a result of the distribution, Orion Phoenix's shareholding will be reduced to 4.28 per cent of AEM's issued and paid-up shares.
Mr James Toh Ban Leng, co-founder of New Earth Group, which is the general partner of the fund, will become a substantial shareholder of AEM, with a stake of 7.75 per cent. This also makes him the single largest shareholder.
Following the distribution, AEM executive chairman Loke Wai San, also an LP of Orion Phoenix, will hold 1.99 per cent of AEM shares. Mr Loke is the other co-founder of New Earth Group. Both men have committed not to dispose of their AEM shares in the near future. "James and I are committed to be long-term shareholders of AEM," Mr Loke said in a statement.
AEM shares ended two cents higher at $7.07 yesterday.