KUALA LUMPUR (Nov 19): Oversea Enterprise Bhd said on Friday that LKL International Bhd co-founder and managing director Lim Kon Lian has emerged as a substantial shareholder of the restaurant operator on Thursday after he subscribed to 261.92 million shares representing a 23.077% stake via a private placement.
The filing with Bursa Malaysia on Friday followed a filing on Nov 11 where Oversea Enterprise said the company had fixed the issue price of the placement of 261.92 million new shares — the first and final tranche of the private placement — at 7.37 sen each.
As such, Lim is now the second largest shareholder in Oversea Enterprise, just behind Datuk Chai Woon Chet, who holds 453.78 million shares for a 39.13% stake in the company based on Oversea Enterprise’s latest-reported expanded number of issued shares at 1.15 billion.
On Thursday, Oversea Enterprise said its latest number of issued shares stood at 1.15 billion following placement of the 261.92 million new shares, which were later listed on Bursa on Friday.
At the time of writing, the stock was unchanged at 10 sen, giving the company a market value of about RM115 million, with 215,100 shares transacted so far in the day.
Oversea Enterprise initially announced on July 28 its proposed private placement of new shares is intended to be completed prior to the implementation of the company’s planned rights issue of new shares with free detachable warrants.
The proposals are intended to raise money, which will partly finance Oversea Enterprise’s plan to set up more restaurants, according to the company’s Bursa filing then.
All in all, the proposed private placement comprises up to 396.38 million new shares, representing 30% of the company’s enlarged number of issued shares, to independent third-party investors.
Oversea Enterprise also announced its planned renounceable rights issue of up to 1.72 billion new shares with up to 572.55 million free detachable warrants in the company on the basis of three rights shares and one warrant for every three existing shares held.
"Subject to all relevant approvals being obtained, the proposals are expected to be completed by the fourth quarter of 2021,” Oversea Enterprise said then.