News

Advance Synergy Furniture Sdn Bhd ("ASF") (Special Administrators Appointed) - Proposed Subscription By Hotline Furniture Berhad ("HFB") Of 24,000,000 New Ordinary Shares Of RM1.00 Each In ASF For A Total Subscription Price Of RM36,000,000

BackJul 26, 2001
General Announcement
Reference No CU-010726-55841
Submitting Merchant Bank : Not Applicable
Company Name : ADVANCE SYNERGY BERHAD
Stock Name : ASB
Date Announced : 26/07/2001

Type : Announcement
Subject : ADVANCE SYNERGY FURNITURE SDN BHD ("ASF") (SPECIAL ADMINISTRATORS APPOINTED)
- Proposed subscription by Hotline Furniture Berhad ("HFB") of 24,000,000 new ordinary shares of RM1.00 each in ASF for a total subscription price of RM36,000,000

Contents :

The Board of Directors of Advance Synergy Berhad ("ASB") had on 28 February 2001 announced that ASF (Special Administrators Appointed) had entered into a Share Subscription Agreement ("SSA") with Hotline Furniture Berhad ("HFB") and Pengurusan Danaharta Nasional Berhad ("Creditors' Agent") in relation to a proposal formulated by the Special Administrators of ASF ("SA") whereby HFB shall subscribe for 24,000,000 new ordinary shares of RM1.00 each in ASF for a total subscription price of RM36,000,000 to be satisfied through the proposed issuance of up to 30,000,000 new ordinary shares of RM1.00 each in HFB ("HFB Shares") at an issue price of RM1.20 per new HFB Share to ASF (hereinafter referred to as "Proposed ASF Subscription").
 
ASB has been notified by the SA that as a result of further negotiations between ASF (Special Administrators Appointed), HFB and the Creditors' Agent, the parties have on 26 July 2001 entered into a Supplemental Agreement to vary certain terms of the Proposed ASF Subscription in particular the following terms:-
  • The total subscription price of RM36,000,000 is to be satisfied through the issuance of 36,000,000 new ordinary shares of RM1.00 each in HFB at an issue price of RM1.00 per new HFB Share, instead of an issue price of RM1.20 per new HFB Share as announced on 28 February 2001. The total number of new HFB Shares to be issued pursuant to the Proposed ASF Subscription will be 36,000,000 instead of 30,000,000 as previously announced.

In view of the change to the issue price of new HFB Shares from RM1.20 per share to RM1.00 per share, the total number of new HFB Shares to be allotted and issued to ASB Group is 7,382,498 instead of 6,152,082.

The new HFB Shares will, upon allotment and issue, rank pari passu with the existing HFB Shares save and except that they will not be entitled to the proposed rights issue currently being implemented by HFB or to any dividends, rights, bonus issue or any other distribution declared to the HFB's shareholders which entitlement precedes the date of allotment of the new HFB Shares.

(This announcement is dated 26 July 2001).