P5 Capital shares jump over 100% on news substantial shareholders to sell stakes at hefty premium

SINGAPORE - Three substantial shareholders of Catalist-listed P5 Capital, who in total hold 28.52 per cent of the company's shares, will sell their stakes to Lim Shao-Lin at a hefty premium.

The sale of some 159 million shares in total for $10 million works out to a sale price of about $0.063 per share. The counter closed unchanged at $0.011 on Monday. The company called for a trading halt on Tuesday morning, prior to its substantial shareholder sale announcement on Tuesday night.

P5 Capital shares more than doubled over the news on Wednesday morning (July 24) after its trading halt was lifted, with the stock up 118 per cent or $0.013 to $0.024 as at 10:48am.

The sellers are P5 Capital executive directors Lim Kwang Joo and Roland Lim Fong Yee and Song Poo Hok, whose son, Mr Song Wei Ming, is a P5 Capital executive director.

The company called for a trading halt on Tuesday morning prior to its substantial shareholder sale announcement on Tuesday night.

It has since lifted its trading halt, with its shares surging $0.009 or 81.8 per cent to $0.02 as at 9.25am.

Mr Lim Kwang Joo, Mr Roland Lim and Mr Song Wei Ming will step down as executive directors once the deal has concluded. Mr Roland Lim will remain as part of management team at subsidiaries P5, P5 Luminaire and P5 Studio.

Mr Lim Kwang Joo will be retiring in accordance with the company's constitution, said P5 Capital.

He holds 78.8 million shares or 14.14 per cent of the company, Mr Roland Lim holds 35 million shares or 6.28 per cent, while Mr Song Poo Hok has 48 million shares or 8.61 per cent.

While Mr Lim Kwang Joo and Mr Roland Lim will sell their entire stakes, Mr Song Poo Hok will sell a 8.1 per cent stake in P5 Capital and retain a 0.51 per cent shareholding.

The share transfer will take place in two tranches. The first will take place on July 29, 2019, with 63 million shares or 11.3 per cent of P5 Capital transferred for $4 million.

The second transaction will be on Jan 22, 2020, with 96 million shares or 17.22 per cent of the company transferred for $6 million.

The three executive directors will relinquish their positions after the first tranche is completed. Both transactions must be completed before Feb 22, 2020.

P5 Capital manufactures and sells electrical switchboards and generator control panels, for its low-voltage switchgear segment. It also provides automation and lighting products.

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