Yong Tai Bhd's chief executive officer Datuk Wira Boo Kuang Loon is injecting RM36mil into the tourism and cultural related
KUALA LUMPUR: Yong Tai Bhd
's chief executive officer Datuk Wira Boo Kuang Loon will inject RM36mil into the tourism and cultural related property developer in a move to further grow the business.
Under the corporate exercise, Boo will subscribe for 100 million new shares at 36 sen each and this will see him raising his stake from 12% now to 20% following the completion.
"This move to increase my stake in the company is a reflection of my continued conviction and confidence in the Yong Tai Group and the brand that has been built through the years," he said on Friday.
Boo said he strongly believes Yong Tai has tremendous potential and he wants to be part of this long term growth.
His move to subscribe to the 100 million new shares is part of Yong Tai's corporate exercise to issue 400 million new shares to raise RM144mil to raise the necessary funds to finance its on-going projects without incurring high borrowing cost.
Boo will subscribe for the 100 million shares via Domain Capital Sdn Bhd (DCSB) while Full Intelligent International Ltd (FIIL) and Datin Seri Faridatulfirdaus Ariff will also subscribe for 100 million shares each.
The remaining 100 million new shares will be placed out to independent third party investors, at an issue price to be determined later.
Of the RM144mil to be raised, Yong Tai plans to use RM80mil will be used to part financing the development of Terra Square; RM20mil for Impression City; RM19mil for Impression U-Thant, RM22.5mil for working capital. The remaining RM2.5mil will be used to defray the estimated corporate exercise expenses.
Yong Tai hopes to complete the corporate exercise by the second half of 2019.
