KUALA LUMPUR: Property developer Yong Tai Bhd
's warrant holders have approved the issuance of up to 220.05 million new irredeemable convertible preference shares (ICPS) at an issue price of 80 sen each.
The company said 100% of the votes cast at the warrant holders’ meeting on Thursday, approved the ICPS issuance which would enable Hong Kong-listed Sino Haijing Holdings Ltd's capital participation in Yong Tai. The move would also reward existing shareholders of Yong Tai via a bonus issue.
On Feb 4, Yong Tai signed a subscription agreement with Sino Haijing’s subsidiary Impression Culture Asia Ltd to formalise the parties’ intention and understanding in relation to the proposed corporate exercise.
Sino Haijing would invest RM280mil in Yong Tai via the subscription of new shares where Impression Culture would subscribe for Yong Tai’s special Issue of 150 million new shares. This represents 34.5% of the enlarged issued and paid-up share capital of Yong Tai at an issue price of 80 per share.
Impression Culture will also subscribe to the 200 million new ICPS at an issue price of 80 sen per share for RM160 million.
After the corporate exercise, Sino Haijing will be a new substantial shareholder with imore than 33% of the voting shares in Yong Tai. Sino Haijing will seek an exemption from the authorities from undertaking a mandatory takeover offer for all the remaining Yong Tai Shares that it does not already own after the proposed Special Issue and ICPS.
Yong Tai will also undertake a bonus issue of up to 20.05 million new ICPS on the basis of one new ICPS for every 10 Yong Tai shares at an entitlement date to be determined and announced later.
Yong Tai will also place out up to 70 million new shares to independent third party investor(s) yet to be identified.
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