Koh Brothers Eco Engineering to get new substantial investor Penta-Ocean

Tay Peck Gek

Published Mon, Mar 15, 2021 · 08:51 PM

PENTA-OCEAN Construction will be buying 810 million new ordinary shares of Koh Brothers Eco Engineering at S$0.047 per share, in a move for the sustainable-engineering solutions provider to strengthen its financial position to bid for higher value and more capital-intensive projects.

The Catalist-listed engineering company, in a regulatory statement on Monday, announced that the potential new investor, Japan-listed Penta-Ocean, will subscribe for 25.06 per cent to 28.84 per cent of the enlarged issued capital, the exact shareholding depending on whether outstanding warrants and employee stock awards are exercised or vested.

The net proceeds will amount to approximately S$36.87 million, with the investment to strengthen Koh Brothers Eco Engineering's financial position, so that it can bid for more capital-intensive projects and pursue potential growth opportunities.

Koh Brothers Group, after the subscription by Penta-Ocean, will remain the largest shareholder of Koh Brothers Eco Engineering, with a stake of between 54.54 per cent and 54.99 per cent of the enlarged issued capital.

The deal is subject to approval from the Singapore Exchange to list the new shares, as well as shareholders of Koh Brothers Group and Koh Brothers Eco Engineering at separate extraordinary general meetings.

Koh Brothers shares closed flat at S$0.156; Koh Brothers Eco Engineering shares were unchanged at S$0.036 last Friday, as both counters halted trading on Monday. The suspension was lifted post announcement.