|
ANNAIK LIMITED
(Incorporated in Singapore on 24 September 1977)
(Company Registration Number 197702066M)
------------------------------------------------------------------------
PLACEMENT OF 38,000,000 NEW ORDINARY SHARES
------------------------------------------------------------------------
The Directors of AnnAik Limited (the Company) wish to announce that the Company has entered into a placement agreement on 30 April 2007 (the Placement Agreement) with Phillip Securities Pte Ltd (PSPL) pursuant to which PSPL has agreed to procure the subscription and payment for an aggregate of 38,000,000 new ordinary shares (the Placement Shares) in the capital of the Company at the price of S$0.33 for each Placement Share (the Placement) on a best effort basis and subject to the terms and conditions as set out in the Placement Agreement. The Placement Shares when issued and fully paid will rank pari passu in all respects with the existing shares except that they will not rank for any dividend, right, allotment or other distribution, the record date for which falls on or before the Completion Date. For this purpose, record date means, in relation to any dividend, right, allotment or other distribution, the date as at the close of business, on which members of the Company must be registered in order to participate in such dividend, right, allotment or other distribution. As the Completion Date for the Placement of the shares is likely to be after 9 May 2007, the record date for determining shareholders' entitlement to the dividends in respect of the financial year 2006, the Placement Shares will not qualify for the dividends declared in respect of that year. The Placement Shares represent approximately 18.6% of the existing 204,600,000 issued shares in the capital of the Company.
The Placement is conditional upon, amongst other things, approval in-principle for the listing and quotation of the Placement Shares on the Singapore Exchange Securities Trading Limited (the SGX-ST) being obtained on conditions (if any) acceptable to the Company and PSPL on or before 30 July 2007 (or such later date as the Company and PSPL may agree).
The subscription price of S$0.33 per share represents approximately 6.9% discount to the weighted average price for the trades of 'A' shares done on the Official List of the SGX-ST on 27 April 2007 up to the time of signing of the Placement Agreement of S$0.3546 per share. 'A' shares means the 34,100,000 bonus shares issued in April 2007 which because they are not entitled to the dividends declared in respect of year 2006 results, are listed and quoted on the Official List of the SGX-ST as 'A' shares.
The net proceeds from the Placement, after deducting expenses pertaining to the Placement, is estimated at approximately S$12.14 million. The net proceeds will be used to repay certain bank borrowings amounting to about S$3.6 million and the balance will be used for general corporate purpose and working capital. Pending deployment, the net proceeds of the Placement may be placed as deposits with financial institutions or reduce revolving credit facilities as the Directors deem fit.
When completed, the Placement will increase the number of issued shares in the capital of the Company from 204,600,000 ordinary shares as at 30 April 2007 which include the 34,100,000 bonus shares issued in April 2007 to 242,600,000 ordinary shares. Further, the issued share capital of the Company will increase from $22,838,890 as at 30 April 2007 to $35,378,890. The Group's net tangible assets will also increase from S$0.17 per share as at 30 April 2007 to S$0.19 per share.
None of the Directors or substantial shareholders of the Company has any interest, direct or indirect, in the Placement.
BY ORDER OF THE BOARD
Yeo Poh Noi Caroline / Wong Yoen Har
Company Secretaries
30th April 2007
|
