Hong Lai Huat proposes 40.5 million share placement to executive director

After the proposed placement, Ong and his family will own 51.1% of the company’s enlarged share capital.

Hong Lai Huat Group Limited has announced its intention to undertake a proposed placement of 40.5 million new ordinary shares to executive director Ong Jia Jing (Dylan Ong).

The placement will represent 7.82% of the company’s current share capital and 7.25% of the enlarged share capital.

The shares will be issued at a price based on the weighted average trading price over the 14-day period preceding the issuance. The placement is not underwritten, and no prospectus or offer document will be issued.

Ong, together with his concert parties, including Dato’ Ong Bee Huat, Mdm Lau Yen Eng, and Ong Jia Ming, currently hold 47.28% of the company’s voting rights.

Following the placement, their combined stake will rise to 51.1%, which would normally trigger a mandatory general offer under the Singapore Code on Take-overs and Mergers.

However, Ong has received a Whitewash Waiver from the Securities Industry Council, exempting him from this obligation. The waiver is contingent on shareholders approving a Whitewash Resolution at an upcoming general meeting (EGM).

The proceeds from the placement will be used for the company’s working capital.

The proposed placement is subject to approval from the SGX-ST and shareholder approval at the EGM. Ong and his concert parties will abstain from voting on the resolution related to the placement.

Shareholders and potential investors are advised that the proposed placement is subject to the fulfillment of the necessary conditions and approvals. There is no guarantee that the placement will proceed.