SIA will reintegrate SIA Cargo as a division of the airline while Ley Choon’s rights issue was oversubscribed.
SIA reintegrates SIA Cargo as division
Singapore Airlines (SIA) is reintegrating wholly-owned subsidiary SIA Cargo as a division within the airline group to enhance efficiency.
In a Friday announcement, the international airline said the reintegration is forecast to be completed in H1 2018, whereupon it will be reported as a “cargo division” of the group.
SIA Cargo was a major drag in SIA’s fourth-quarter net loss of S$138.3 million. The airline made an S$132 million provision for SIA Cargo related to a competition law case in the European Union. The unit had a narrower operating loss of S$5 million during the quarter.
A division of SIA until July 2001, Sia Cargo was turned into a standalone airline to carry out expansion.
Ley Choon rights oversubscribed
Catalist-listed Ley Choon Group Holdings Limited successfully closed its rights issue on 11 May 2017, enabling the company to raise net proceeds of approximately S$8.6 million.
The renounceable non-underwritten one-for-one rights issue of up to 592,406,996 new ordinary shares in the capital of the company at an issue price of S$0.015 for each rights share received a high level of support from shareholders.
At the close of the rights Issue, the group received valid acceptances and excess applications for 894,055,236 rights shares. This represents an approximately 150.92 per cent of the total number of rights shares available under the rights Issue.
On the successful conduct of the rights issue, Ley Choon’s executive chairman and CEO Toh Choo Huat commented: “On behalf of the Board, I would like to thank our shareholders for their strong support of the Rights Issue. This has enabled us to meet our objective of raising capital pursuant to the debt restructuring agreement with our lenders. Our major controlling shareholders have maintained their shareholding in the Company as a sign of commitment to and confidence of the prospects of our company.”
The total net proceeds of approximately S$8.6 million was arrived after deducting estimated expenses of approximately S$0.2 million. Use of net proceeds include the offsetting of Zheng Choon’s outstanding loan; funding of new projects or when opportunities arise for business expansion; and general working capital.
Ley Choon’s largest shareholder, Zheng Choon Holding Pte. Ltd., has subscribed for its prorata entitlement of the rights shares under the rights issue which amounts to 296,379,500 rights shares, as a pledge of support for the rights issue and commitment to the group. Following the close of the rights issue, the shareholding of Zheng Choon Holding Pte. Ltd. is maintained at 50.03 per cent.