Company Briefs: Lippo Karawaci; Tembusu Partners

Lippo Karawaci

Indonesian real estate developer Lippo Karawaci has received US$280 million (S$377 million) in advance subscription payment for part of the entitlements to a US$730 million rights issue, said the sponsor for Singapore-listed First Real Estate Investment Trust and Lippo Malls Indonesia Retail Trust yesterday.

PT Inti Anugerah Pratama (IAP), a shareholder of Lippo Karawaci, and IAP's wholly owned subsidiary have pumped in the sum as advance subscription payment for Lippo Karawaci's rights at an exercise price of 235 rupiah per share, with the pre-funded amount in cash being non-interest bearing and non-refundable.

Lippo Karawaci intends to apply the proceeds from the rights issue to pare debt, according to an earlier story.

The rights issue, slated for completion in the first half of this year, is subject to shareholders' approval at an upcoming annual general meeting on April 18, as well as the necessary regulatory approvals.

Tembusu Partners

Singapore-based Tembusu Partners is launching several investment funds totalling one billion yuan (S$205.6 million). This comes as the private equity firm looks to increase its investments in China, it said yesterday.

This coincides with the Chinese government's efforts to "liberalise the economy and promote innovation", the company added.

The move follows the company securing its Qualified Foreign Limited Partner (QFLP) status for its foreign fund management firm in Guizhou province. With the QFLP licence, investors would enjoy an "express lane" for regulatory approval and taxation without foreign currency convertibility issues. This would allow investors to make multiple direct investments in Chinese companies more easily due to the shortened transaction time and investment process.

The funds launched would primarily be invested in technology, infrastructure, healthcare, tourism and impact-related projects in China, with investee companies being eligible for financial incentive schemes from the Chinese government.

Tembusu will also receive "first-hand access to deal flow" through its strategic partnership with the Guizhou government.

The Guizhou firm is an 80:20 joint venture between Tembusu and a Guizhou state-owned entity.

A version of this article appeared in the print edition of The Straits Times on March 22, 2019, with the headline 'Company Briefs'. Subscribe