Pine Capital says it bought ACPAM shares in ‘urgent capital call’

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Pine Capital said late on Wednesday that it subscribed for new shares in its 51 percent-owned subsidiary Advance Capital Partners Asset Management, or ACPAM, at the fund manager’s “urgent request” to meet regulatory requirements.

“ACPAM, which is a principal subsidiary of the company, is a fund management company that is registered with the Monetary Authority of Singapore (MAS). As a registered fund management company (RFMC), ACPAM is required by the MAS to maintain at all times a certain level of base capital,” Pine Capital said in a filing to SGX late on Wednesday.

“The purpose of the subscription, and the corresponding increase in the capital of ACPAM, is to enable and assist ACPAM, as a RFMC, to comply with its base capital requirement,” the filing said.

A letter, dated 29 March, from ACPAM said the “urgent capital call” was due to increased expenses, the filing said.

Pine Capital said that while it proceeded with the subscription due to the urgency, it has also sought more information.

“The board has also emphasized that ACPAM should not be expending the monies contributed under this subscription nor should it be expending any further monies which would result in ACPAM not meeting the base capital requirement going forward save with the company’s prior written consent,” the filing said.

The company said it subscribed for 277 new shares of ACPAM for S$66,895 in cash on Tuesday, with the shares to be issued on Wednesday.

Pine Capital said it “understands” that Tan Choon Wee, the executive director and CEO of ACPAM, also subscribed for 266 new shares at S$241.50 each.

The company funded the subscription with proceeds from a placement of 799 million new ordinary shares in November, the filing said.

After the subscription, ACPAM’s issued and paid-up share capital will rise to S$1.31 million, comprising 7,820 shares, from S$1.18 million previously, the filing said.

Pine Capital will continue to hold around 51 percent of ACPAM, while Tan will hold the remainder, the filing said.