Singapore eDevelopment (SeD) said it is meeting retail and institutional investors in Singapore to outline how it intends to enhance shareholder value through property development – chiefly in the United States and Australia – and info-communications technology (ICT) after disposing its Singapore construction business in May, 2014.
Its construction business had led to significant losses in the financial year ended 31 December 2013 (FY2013) which spilled over into FY 2014. Singapore eDevelopment is seeking legal advice on a call made to settle a corporate indemnity related to its legacy construction business.
On 12 August, SeD said it would buy a 100%-stake in HotApps International, a software developer which owns applications for instant messaging, social media and e-commerce platforms, and has entered into a Memorandum of Understanding to acquire CloudTel, a telecom hardware and software developer.
To fund its growth strategy, SeD is issuing 12 rights Shares at 0.3 cent each for every existing share held, and one bonus share for every rights share subscribed for. This would help it raise net proceeds of between a minimum of $3.3 million and a maximum of up to $129.1 million.
The book closure date of the rights issue will be on 26 August 2014.
The company also announced last Thursday that Dr. Toh Soon Huat, a corporate veteran and the founder of former SGX Mainboard-listed Novena Holdings, has emerged as a substantial shareholder after he acquired 30 million SeD shares cum-rights. SeD’s shares began trading ex-rights last Friday with a total volume of 151 million shares – the most active counter on the SGX for the day – to close at 0.3 cent each.
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