Iconic chairman Tan raises equity in Sanbumi

Scomi Group Bhd surprised investors when it proposed to revise its current issued share capital reduction from RM224.96mil to RM3mil from the earlier RM40mil.

PETALING JAYA: Sanbumi Holdings Bhd said Datuk Tan Kean Tet, the chairman of Penang-based property developer Iconic Group Sdn Bhd, is acquiring a substantial stake in the company.

Sanbumi, in a filing with Bursa Malaysia, said the company had entered into a conditional share subscription agreement with Tan for the placement of 22.6 million new shares at 17.3 sen each.

Shares in Sanbumi were last traded at 20 sen yesterday.

Tan, 56, will pay RM3.9mil for the shares, which will increase his stake in the company from 1.39% to 10.36%.

The proposed placement, Sanbumi said, would enable the company to raise funds to meet its working capital requirements and embark on future projects.

“The offer from Tan to subscribe for the placement shares comes at an opportune time, as it allows the company to bring Tan in as a strategic investor.

“The company will also be able to tap and leverage on Tan’s experience in property development as well as hotel development and management,” Sanbumi said.

Tan ventured into property development via the incorporation of Iconic in 2011 and subsequently expanded the business of Iconic into the hospitality sector in 2016.

The Iconic group has completed property development projects worth about RM600mil in gross sales value.

It owns the four-star Iconic Hotel in Juru, Seberang Prai.