Tycoon Oei Hong Leong could become Apsil's controlling shareholder if rights issue undersubscribed

Mr Oei Hong Leong intends to take up 7.79 billion of the new rights shares in an underscubscription scenario.
Mr Oei Hong Leong intends to take up 7.79 billion of the new rights shares in an underscubscription scenario. PHOTO: ST FILE

SINGAPORE - Tycoon Oei Hong Leong could potentially become Asia-Pacific Strategic Investments Limited's (Apsil) controlling shareholder if its right issue is substantially undersubscribed, the Catalist-listed firm said.

Mr Oei intends to take up 7.79 billion of the new rights shares in an underscubscription scenario. In January 2016, Apsil announced that it has agreed to place out 2.6 billion new shares at 0.54 Singapore cent apiece to Mr Oei to raise S$14.2 million. However, this placement did not materialise as some of the pre-requisite conditions were not met.

In a statement on Friday (Dec 8), Apsil said shareholders have fully backed its 2-for-1 rights cum warrants issue at the group's extraordinary general meeting (EGM) held on Dec 6, 2017.

The rights cum warrants issue is partially underwritten by UOB Kay Hian and sub-underwritten by Mr Oei.

Assuming the full conversion of its existing warrants, the issued ordinary share capital of Apsil will be 7.27 billion shares. The approved rights issue could raise up to S$42.7 million in net proceeds with the full subscription of all 14.54 billion new shares issued at 0.3 Singapore cents apiece. "Between 70 and 90 per cent of the net proceeds will be used to fund the group's expansion into the proposed new business of real estate development," the group said.

Apsil intends to expand its reach into China's property sector, having recently acquired two property companies in Huzhou in Zhejiang province. In Singapore, the group owns a real estate agency business, Global Alliance Property Pte Ltd, with a pool of about 650 real estate agents that operates under the Century 21 franchise.