SINGAPORE - A 51 per cent subsidiary of entertainment company mm2 Asia has sold a 5.39 per cent stake in Singapore-listed UnUsUaL for S$25.8 million, or S$0.465 per share, to Brunei's Prince Abdul Qawi and a fund started by Osim founder Ron Sim.
mm2 Asia has no immediate plans for the use of these proceeds, the company said.
The 55.5 million shares were sold at a 1 per cent discount to UnUsUaL's Monday closing price of S$0.47. UnUsUaL is a concert promotion and event production company.
Prince Qawi acquired 49 million of those shares for S$22.8 million, representing 4.76 per cent stake. Mr Sim's R3 Asian Gems bought about 6.5 million shares for S$3 million, representing a 0.63 per cent shareholding.
Following the share purchase, mm2's subsidiary, UnUsUaL Management, remains the largest shareholder of UnUsUaL, although its stake has been pared to 76.8 per cent from 82.2 per cent.
Save for their respective interests in mm2 Asia, none of the directors or controlling shareholders of mm2 Asia has any interest in this transaction, mm2 Asia said in its filing to the Singapore bourse.
mm2 Asia added that the transaction is not expected to have any material impact on the group's earnings per share and net tangible asset per share for the current financial year.
mm2 Asia executive chairman Melvin Ang described the new shareholders as "strategic investors".
"UnUsUaL has charted a remarkable growth trajectory since its listing on SGX-ST Catalist slightly more than a year ago, offering more and more international acts, as well as expanding regionally into Taiwan, South Korea and China," he said.
Prince Qawi said he is excited about UnUsUaL's business prospects as he sees "strong potential in providing high quality live entertainment to the rapidly growing urban populations in Asia".
"I look forward to helping UnUsUaL connect with strong strategic partners as they continue to diversify their show offerings, and expand their regional footprint," he added.