General Announcement::Renounceable Non-Underwritten Rights Issue - Use of Proceeds from the Rights Issue
November 30, 2021 at 04:51 pm IST
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HONG LEONG ASIA LTD.
(Company Registration Number: 196300306G)
(Incorporated in Singapore)
RENOUNCEABLE NON-UNDERWRITTEN RIGHTS ISSUE
USE OF PROCEEDS FROM THE RIGHTS ISSUE
Unless otherwise defined, all capitalised terms used in this announcement shall bear the same meaning as ascribed to them in the Company's offer information statement in relation to the Rights Issue (the "Offer Information Statement") lodged with the Monetary Authority of Singapore on 3 October 2018.
The board of directors (the "Board" or the "Directors") of Hong Leong Asia Ltd. (the "Company", and together with its subsidiaries, the "Group") refers to the Offer Information Statement, and the Company's various subsequent announcements from 23 October 2018 to 12 August 2021 (the "Announcements") in relation to the net proceeds raised from the Rights Issue and the utilisation thereof.
The Board wishes to inform that in addition to S$136.6 million indicated as utilised under the Announcements, approximately S$17.4 million of the net proceeds from the Rights Issue have been further utilised for the construction of a fully mechanized integrated precast plant with state of art technology (the "Plant") on a piece of land at Pulau Punggol Barat, Singapore.
Set out below is a summary of the utilisation of the net proceeds from the Rights Issue as at the date of this Announcement:
No.
Intended Use of Net Proceeds
Amount
Amount Utilised as
Balance of Net
Allocated
at the date of this
Proceeds
Announcement
S$'million
S$'million
S$'million
(a)
Partial repayment of Acquisition
14.0
14.0
0
Loan(1)
(b)
Construction of the Plant
60.0
26.7
33.3
(c)
Repayment of other loans
25.0
25.0
0
(d)
General corporate purposes or
102.1
88.3(2)
13.8
making strategic investments
and/or acquisitions
Total
201.1(3)
154.0
47.1
Notes:
"Acquisition Loan" refers to the loan taken up by the Group, a portion of which was used to finance the consideration of approximately S$14.0 million for the acquisition of a 51% stake in a piece of land at Pulau Punggol Barat, Singapore with a 30-year lease (the "Land"), which award of tender for the Land was announced by the Company on 27 July 2018.
Being acquisition of assets relating to the Group's quarry operations, purchase of additional equity interests in subsidiaries and an associated company, and ongoing upgrading works for the Singapore plants of the Building Materials Unit.
The final net proceeds raised after deducting expenses relating to the Rights Issue was approximately S$201.1 million.
1
Following the aforesaid deployment of the net proceeds from the Rights Issue, the amount utilised for the repayment of short-term revolving facilities has been reduced to S$47.1 million.
The above utilisation of the net proceeds from the Rights Issue is consistent with the intended uses as stated in the Offer Information Statement.
The Company will continue to make periodic announcements via SGXNET as and when such funds are materially utilised and provide a status report on the use of the net proceeds from the Rights Issue in the Company's half year and full year financial results announcements and in the Company's annual report, until such time the net proceeds have been fully utilised.
BY ORDER OF THE BOARD
HONG LEONG ASIA LTD.
Ng Siew Ping, Jaslin
Yeo Swee Gim, Joanne
Company Secretaries
30 November 2021
Singapore
2
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Hong Leong Asia Ltd. published this content on 30 November 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 30 November 2021 11:20:05 UTC.
Hong Leong Asia Ltd. is an investment holding company. The principal activities of the Company and its subsidiaries are those relating to the manufacturing and distribution of diesel engines and related products, building materials, rigid packaging products, and investment holding and dealing. Its Diesel engines segment includes diesel engines and automobile spare parts. The Building materials segment consists of cement, precast concrete products, ready-mix concrete, and quarry products. Rigid packaging segment includes plastic packaging related products and container components. It manufactures, assembles and sells a variety of light, medium and heavy-duty engines for trucks, buses, passenger vehicles, industrial equipment, marine and agricultural applications. It offers various grades of ready-mix concrete as well as precast concrete elements for public housing construction. Its geographical markets include the Peopleâs Republic of China, Singapore, Malaysia, and others.