Tuesday, August 07, 2012

Haiyi Holdings to invest S$94.4m in SingXpress Land

SINGAPORE: SGX Catalist-listed SingXpress Land announced on Tuesday that an investor will be putting in S$94.4 million into the firm.


In a filing with the Singapore Exchange, the property developer said Haiyi Holdings has entered into a conditional agreement to subscribe for 80 units of cumulative convertible non-voting perpetual preference shares (NRCCPS) in the company at S$1.18 million each.

Haiyi Holdings is the Singapore investment vehicle of Chinese national and Singapore permanent resident Tang Yigang.



Chan Heng Fai, managing director of SingXpress Land said the NRCCPS exercise will strengthen the company's balance sheet, and enable it to take a quantum leap in the execution of its "investment banking approach to property".

With expertise in securitization, syndication and risk management, Mr Chan added that this will allow the company to build a network of partners and adopt fresh approaches to unlocking value in developing real estate in Singapore.

The company said the NRCCPS will have no maturity, but will accrue annual dividends amounting to 3 per cent of the issue price.

Each NRCCPS unit can be converted into 100 million SingXpress Land shares. If fully converted, the company's issued and paid-up share capital will increase from S$73.2 million comprising 4.87 billion shares to S$167.4 million comprising 12.87 billion shares.

A full conversion will also result in a maximum of 8 billion conversion shares to be issued to Haiyi, which would end up with 62.2 per cent of SingXpress Land's enlarged share capital base.

Should the level of conversion trigger a mandatory general offer obligation, the company said Haiyi has agreed that it will or procure the transferee of any NRCCPS, to conduct a general offer for SingXpress Land's common shares.

The issue of NRCCPS is subject to the approval of shareholders of SingXpress Land and its parent company.

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