Boo says the decision to increase its equity participation in Yong Tai shows Co-Prosperity
KUALA LUMPUR: Hong Kong-listed Co-Prosperity Holdings Ltd is increasing its shareholding in tourism and cultural property developer Yong Tai Bhd (YTB) via a private placement exercise.
YTB told Bursa Malaysia that Co-Prosperity’s wholly-owned subsidiary Full Winning Developments Ltd (FWDL) plans to subscribe to 43 million YTB shares, or 9.87% of YTB’s issued share capital.
Through this injection of RM54.18mil into YTB, Co-Prosperity’s stake will rise from 24.56% to 31.34% of the voting shares in the company. (Co-Prosperity’s original 24.56% stake had been purchased in May from another Hong Kong-listed company, Sino Haijing Holdings Ltd, for RM117.7mil.)
On Wednesday, YTB entered into a conditional share subscription agreement with FWDL, with the subscription price fixed at RM1.26 per share. YTB shares closed trading on the same day at RM1.39 each, up 1 sen.
The proposal requires, among others, the approval of YTB’s shareholders.
YTB said the agreement would lapse if any of the conditions precedent was not satisfied or expressly waived by FWDL by 6pm on the date falling three months from the agreement’s date.
Co-Prosperity’s share purchase comes ahead of the Impression Melaka theatre’s scheduled opening in February 2018.
Meanwhile, in a press statement, Yong Tai group chief executive officer Datuk Wira Boo Kuang Loon said the decision to increase its equity participation in the company showed Co-Prosperity’s commitment and confidence in the group’s business direction.
“The decision is also in line with Co-Prosperity’s business plan to expedite its development and diversification into the media, cultural and entertainment business as Yong Tai Group is involved in tourism and cultural related developments,” he said.
The proposed private placement is expected to be completed by the fourth quarter of 2017.
Most of the RM54.18mil gross proceeds from the proposed placement is intended to be advanced to subsidiary Iconic Paragon Sdn Bhd as shareholder’s advance to finance, among others, the proposed purchase of two pieces of Bukit Bintang land measuring 1.08 acres from the Kuala Lumpur Mayor.
Maybank IB has been appointed as the sole placement agent.
* See also Yong Tai scraps JV mixed development project in Puchong
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