TEE International has entered a non-binding term sheet with Wah Loon Group’s Chong Sin Kiong and Dymon Asia Capital’s Tan Keng Soon to subscribe for as much as S$14 million worth of shares in the company along with a debt restructuring, the company said Friday.
The proceeds will be used for working capital purposes and to fund growth after the debt restructuring is completed, the company said in a filing to SGX.
Under the deal, the two investors will subscribe for S$7 million in new shares, and the company will grant the investors options to issue up to S$7 million in new shares, TEE International said.
Once the initial subscription deal is completed, Chong will hold around 43.1 percent of TEE International’s enlarged share capital and Tan will hold around 7 percent, the filing said. That would include shares issued for debt settlement and other purposes, the filing said.
If the investors take up their full entitlement of option shares within 12 months, Chong and Tan would hold around 56.9 percent and 9.2 percent, respectively, of TEE International’s enlarged share capital, the company said.
Along with the proposed deal, the company and its wholly owned subsidiary, PBT Engineering, will undertake a debt restructuring to settle unsecured liabilities via the issue of new shares and/or in cash, the filing said.
Chong is the founder and managing director of Wah Loon Group, which provides mechanical and electrical engineering services, and he has been expanding his company regionally, including into Malaysia, the filing said.
Wah Loon has taken over by way of novation some projects from Trans Equatorial Engineering, a subsidiary of TEE International which has been placed in creditors’ voluntary liquidation, the filing said.
Chong will take up S$6.02 million in TEE International shares, the filing said.
Tan is the co-founder and managing partner of Dymon Asia Capital (S), the filing said. Tan will take up S$980,000 in TEE International shares in the subscription deal, the filing said.