In separate business developments in Malaysia, Axis REIT Managers Berhad has closed a $42.4 million private placement, while a new solar power joint venture company was formed by Trive Property Group Berhad, and Jiangxi Fujing New Energy Technology Co Ltd.
Axis-REIT completes $42m private placement
Malaysia’s property investment trust Axis REIT Managers Berhad (Axis-REIT) has completed its sixth private placement of up to $42.4 million ((RM178.8 million).
It placed out over 125 million new units priced at RM1.43 apiece representing a discount of approximately 5.17 per cent to the five days volume weighted average market price (VWAMP) up to November 9, 2017.
Proceeds will be used to pare down the borrowings of Axis-REIT for the financial year-to-date, as well as lower the gearing ratio.
Trive, JFNET ink solar biz JV
Trive Property Group Berhad (Trive), and China-based Jiangxi Fujing New Energy Technology Co Ltd (JFNET) have signed a 50:50 solar power joint venture deal on Friday (November 10).
Called Daima Fujing New Energy Technology Sdn Bhd (DFNET), the JV firm will undertake the research and development, assembly, production, distribute and marketing of photo-voltaic products such as solar cells, solar panels or solar modules including solar systems in design and storage of solar power business.
“The joint venture provides an opportunity for the company to develop its solar business which is expected to provide an additional source of earnings and improve its financial performance,” Trive said in its statement.
Upon issuance of the relevant manufacturing license, Trive and JFNET agree to further subscribe for 30 million ordinary shares in DFNET for RM30 million in equal portion.
The parties further commit to subscribe for additional 20 million ordinary shares in DFNET for $20 million once phase three of the business starts.