KUALA LUMPUR (May 17): Yong Tai Bhd’s chief executive officer Datuk Wira Boo Kuang Loon is injecting RM36 million in cash into the developer, raising his stake to 20% to sustain the group’s ongoing property development projects.

According to a statement, Boo said that he is raising his stake in the group, which currently stands at 12%, via special purpose vehicle (SPV) Domain Capital Sdn Bhd (DCSB) which will subscribe to 100 million new shares in the group.

"This move to increase my stake in the company is a reflection of my continued conviction and confidence in the Yong Tai Group and the brand that has been built through the years

I strongly believe that the group has tremendous potential and I am keen to participate in its long-term growth trajectory,” said Boo.

Boo’s cash injection is part of a fund-raising exercise announced on Bursa Malaysia today.

Yong Tai said it was looking to raise RM144 million from a proposed special issue of up to 400 million new shares, and that it has concurrently entered into three subscription agreements with DCSB, Datin Seri Faridatulfirdaus Ariff and Full Intelligent International Ltd (FIIL).

The three parties will subscribe to a total of 300 million special issue shares, with each subscriber acquiring 100 million new shares worth 36 sen apiece, amounting to RM36 million each.

Boo is director of DCSB and holds a 30% stake in the company, with the remaining stake held by Hogda Capital Ltd.

Meanwhile, FIIL is a unit of Asia Television Holdings Ltd, which is a holding company of major shareholder Full Winning Developments Ltd, a major shareholder of Yong Tai.

Faridatulfirdaus, the third major share subscriber, is a senior private secretary at Bank Kerjasama Rakyat Malaysia Bhd.

Consequently, the remaining 100 million shares will be placed out to independent third party investors at an issue price to be determined later.

The group said the introduction of new shares would enable it to finance ongoing projects without incurring a high borrowing cost and strengthen its financial position by enlarging its capital base.

Of the RM144 million expected to be raised, RM80 million would be used to finance its Terra Square development, RM20 million would finance the Impression City development, and RM19 million would be for its Impression U-Thant development.

Meanwhile, RM22.5 million will be earmarked for working capital with RM2.5 million will be utilised in order to defray expenses associated with the release of the new shares.

The counter closed 1.43% or half a sen lower at 34.5 sen – with 1.65 million shares traded – giving it a market capitalisation of RM184.32 million.