LONDON - Aseana Properties Limited (LSE: ASPL), a property developer operating in Malaysia, has entered into a conditional subscription agreement with Neuchatel Investment Holdings Limited, the company announced today. The agreement involves the issue of new ordinary shares, which could result in Neuchatel Investment Holdings acquiring up to 29.9% of Aseana's enlarged issued share capital.
The subscription price is set at $0.08 per share, and the anticipated proceeds are approximately $5.45 million. This move is part of Aseana's strategy to address its current financial challenges, including repaying outstanding bank facilities to avoid foreclosure actions by KPMG Corporate Restructuring PLT, appointed by Maybank Investment Bank Berhad.
Completion of the subscription is subject to several conditions, including the approval of Aseana's shareholders at a forthcoming general meeting and the admission of the subscription shares to trading on the London Stock Exchange (LON:LSEG). The company will issue a circular to shareholders with details of the general meeting and further information on the subscription.
Neuchatel Investment Holdings is owned by Mr. Lim Kian Onn, a prominent Malaysian banker and businessman with a notable track record in various sectors including financial services, aviation, and hospitality. His involvement is expected to bring valuable experience and resources to Aseana, particularly in financial restructuring and business development.
The funds raised through the subscription will be allocated to repay bank facilities and provide operating capital for Aseana's ongoing operations and financial restructuring efforts. The company's board unanimously supports the subscription, considering it the most efficient method to achieve near-term strategic objectives and in the best interests of the company and its shareholders.
Further announcements regarding the subscription, including the timetable of events, will be made in due course. This move is based on a press release from Aseana Properties Limited.
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