Company Briefs: Innopac Holdings

Innopac Holdings

Innopac Holdings yesterday announced an $8.4 million stock placement that will result in a change of control, a disposal of five subsidiaries and a $2.5 million secured loan facility. The investment holding firm will place 8.4 billion new shares at 0.1 cent apiece to 11 individual investors. The new shares will represent about 65 per cent of its enlarged share capital.

The largest investors in the placement are Malaysian investment holding firm Masmeyer Holdings' managing director Choo Beng Kai and Malaysia-listed Asia File Corp executive chairman Lim Soon Huat. Mr Choo and Mr Lim will be the new controlling shareholders with a 19.4 per cent and 15.6 per cent stake respectively.

The $7.95 million in net proceeds will be used for investments and acquisitions, and repayment of loans, among other things.

Innopac has agreed to an 18 per cent loan facility for up to $2.5 million from a vehicle controlled by Mr Choo. It has also agreed to sell its entire shareholding interest in five subsidiaries - which had a negative book value of about $8.3 million as of June 30 - to chairman and chief executive Wong Chin Yong for $100,000. Mr Wong will then resign from Innopac.

The placement, disposal of subsidiaries and change of control require shareholders' approval. Innopac shares have been suspended on the Singapore Exchange since June 7.

Chew's Group

A mandatory unconditional cash offer has been made for shares in Catalist-listed egg farmer Chew's Group, after members of the Chew family completed the sale of their 68.14 per cent stake.

The buyer, Goldhill Trust, is now offering a final price of 21.07 cents in cash for each remaining share in the company, according to an announcement issued on Monday, after its sale and purchase agreement with the Chews' Fenghe Investment Holding went through.

Under the terms of the sale and purchase agreement, all six company directors will have to resign upon the close of the offer. Executive chairman Chew Chee Bin will get payment in lieu of six months' notice, as well as a pro-rated annual wage supplement.

The offeror does not intend to revise the offer price, said Hong Leong Finance, which is acting for Goldhill Trust. The offeror, which intends to keep Chew's listed, plans to carry out a review of the group's business. The offer document will be sent out between Oct 22 and Oct 29.

Chew's closed flat at 21.5 cents on Monday.

A version of this article appeared in the print edition of The Straits Times on October 10, 2018, with the headline 'Company Briefs'. Subscribe