Raffles United: Major shareholder agrees to vote in favor of rights issue

Singapore two-dollar bills

Raffles United said on Thursday that Teo Xian-Hui Amanda Marie, or TXH, who holds around 65.76 percent of the company’s shares, will vote in favor of its planned rights issue and will take up the full allotment of rights.

The company earlier this month proposed a renounceable rights issue of up to 234.06 million new ordinary shares at an issue price of S$0.05 each on the basis of one rights share for each existing share to raise net proceeds of up to around S$11.6 million. The price is a 39.0 percent discount to the closing market price of S$0.082 on 8 January, it said.

It has said it will be seeking shareholders’ approval of the offering at an extraordinary general meeting (EGM).

TXH has agreed to vote in favor of the rights issue at the EGM and to fully subscribe and pay for an aggregate of 153.93 million rights shares, in line with her direct and indirect shareholdings, the company said in a filing to SGX after the market close on Thursday.

“TXH has furnished a confirmation of its financial resources from a financial institution that she has sufficient financial resources to fulfil her obligations,” it said.

Depending on the take-up of the rights issue, she could end up holding between 65.76 percent and 79.35 percent of Raffles United’s shares, the filing said.

The company plans to use the net proceeds to repay bank borrowings and for general working capital, it said.

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