SGX Mainboard-listed water treatment and environmental protection company, SIIC Environment Holdings Ltd. (SIIC) has announced that it will raise S$220.5 million from a share placement to Shanghai Industrial Holdings Ltd. (SIHL) and/or nominee designated by SIHL, being Triumph Power Limited (TPL). SIHL is currently the controlling shareholder of SIIC Environment, and TPL is an indirectly wholly owned subsidiary of SIHL.
Under the placement agreement, SIHL and/or TPL will receive an aggregate of 350 million new shares at S$0.63 per placement share. This represents a 10.92% premium to the VWAP of S$0.568 as of 13 January 2017.
The placement price was arrived at following arm’s length negotiations between SIHL and SIIC, taking into account the prevailing share price and the financial position and prospects of SIIC.
SIIC intends to use the net proceeds from the placement to:
i. finance the business expansion of the group;
ii. repay existing borrowings and improve its gearing ratio;
iii. improve its cash flow;
iv. increase working capital; and
v. for general corporate purposes.
The Company intends to further explore ways and/or adopt measures with the objective of boosting its issued share capital and increasing its value. The working capital available to the Group is sufficient to meet its present requirements.
The placement consideration of S$220,500,000 represents approximately 16.49% of the latest audited consolidated NTA of the Group. Approval of the independent shareholders will be required for the placement, in accordance with Chapter 9 of the Listing Rules. The EGM Circular containing information on the placement will be despatched to shareholders in due course.