KUALA LUMPUR (Sept 21): Spritzer Bhd is planning a private placement to raise about RM64 million to build an automated warehouse in Taiping, Ipoh, an exercise which will dilute its largest shareholder Yee Lee Corp Bhd's stake in the company.

Spritzer intends to place out some 27.39 million new shares — representing some 15% of its current issued shares — to Tasik Puncak Holdings Bhd, the sole general partner of Tasik Puncak Holdings LP, the ultimate subscriber for the stake.

The Cayman Islands-registered Tasik Puncak LP is a special purpose vehicle of Dymon Asia Private Equity (SE Asia) Fund LP (DAPE), a Singapore-based fund manager, according to Spritzer's Bursa Malaysia filing today.

DAPE manages several alternative investment funds with notional assets under management and committed capital of about US$5.3 billion as at Sept 1, under its PE division Dymon Asia Private Equity.

The placement, at an issue price of RM2.33 per share, is expected to raise gross proceeds of RM63.81 million for Spritzer, and expand Spritzer's total issued shares to 209.97 million from 182.58 million.

On completion of the placement, Tasik Puncak will emerge as its second largest shareholder with a 13.04% stake, while Yee Lee's stake will be trimmed to 27.89% from 32.07%.

Further, Tasik Puncak will be entitled to nominatee a director to Spritzer's board. “(The nominee director) is expected to assist the Board of Spritzer on the future growth plans of Spritzer, which may include product marketing in new markets and potential mergers and acquisitions with suitable companies,” Spritzer said.

It intends to use 70.5% or RM45 million of the proceeds raised to construct a single-storey automated warehouse, next to its existing Taiping facilities.

The mineral water producer said it has yet to submit any application to authorities for the warehouse construction but is expected to do so by the first quarter of 2018, after concluding the private placement.

Spritzer said the new warehouse will boost its warehouse space by about 105,820 sq ft and raise its warehousing capacity, improve productivity, and increase efficiency.

The remainder of the proceeds will be used for working capital (RM18.61 million) and to pay off estimated expenses of the exercise (RM200,000).

Trading in Spritzer's shares, which was suspended from 2.30pm today for the announcement, will resume on Monday.

The stock was last traded at RM2.33 for a market capitalisation of RM425.42 million.