Wednesday, 2 August 2017

(NST) Yong Tai's major shareholder ups its stake

KUALA LUMPUR: Hong Kong-listed Co-Prosperity Holdings Ltd has increased its shareholding in Yong Tai Bhd via a private placement ahead of the Impression Melaka theatre scheduled opening in February 2018.

In a statement, Yong Tai said the exercise will see Co-Prosperity’s wholly-owned Full Winning Developments Ltd (FWDL) subscribing to 43 million new shares at RM1.26 each.

The RM54.18 million to be raised by Yong Tai will enable it to part finance the purchase of the 1.08 acres of land in Bukit Bintang, Kuala Lumpur.

The indicative price of RM1.26 represents a 10 per cent discount to the five-day weighted average market price of Yong Tai’s shares immediately preceding the date of the share subscription agreement.

As a result of the subscription of shares, FWDL will hold 31.34 per cent voting shares in Yong Tai.

Before the corporate exercise, FDWL, a major shareholder of Yong Tai, owns 107 million shares or 24.56 per cent of the company.

Yong Tai group chief executive officer Datuk Wira Boo Kuang Loon said the decision to increase its equity participation demonstrates Co-Prosperity’s commitment and confidence in its 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.

Yong Tai said the corporate exercise would further strengthen the net assets as well as its financial position and enable it to raise additional funds without incurring high borrowing cost.

It placement is expected to be completed by the fourth quarter of 2017.

Yong Tai had also announced the termination of Memorandum of Understanding with Terrawest Resources Sdn Bhd for the proposed acquisition of 1.5 acres land in Puchong to focus on the development within the Impression City project.