Oxley takes 10% stake in Malaysia's Aspen for S$23.3m

Oxley Holdings group executive chairman and chief executive Ching Chiat Kwong.
Oxley Holdings group executive chairman and chief executive Ching Chiat Kwong. PHOTO: THE BUSINESS TIMES

SINGAPORE - Property developer Oxley Holdings announced it has entered into an agreement with Catalist-listed Aspen Group to take a 10.07 per cent stake in the Malaysian company.

Oxley has agreed to subscribe for 97 million shares at an issue price of 24 cents apiece, valuing the stake at S$23.28 million.

The price per share represents a 14.72 per cent premium to the volume-weighted average price of 20.92 cents for each Aspen share, based on trades executed on Catalist on April 27, 2018, the last full market day prior to both parties signing the agreement on April 30.

Aspen is a property development group based in Malaysia with a focus on developing affordable residential and mixed development properties.

It will use the proceeds from the deal for acquiring land banks, future developments and working capital.

Looking ahead, Oxley said that both companies may enter into joint ventures to develop projects in Malaysia or co-invest in suitable property development projects in the region.

"We look forward to leveraging this partnership with significant collaborations with Aspen and their global partners in the region, that will benefit all parties," said Ching Chiat Kwong, executive chairman and chief executive of Oxley.

Aspen had a net asset value of RM286.3 million (S$96.62 million) as at Dec 31, 2017.

Oxley's counter was trading flat at 48 cents apiece as at 12.53pm, while Aspen has requested a lift to its trading halt.