KUALA LUMPUR (Aug 27): Focus Dynamics Group Bhd has emerged as the largest shareholder with a 16.667% stake in Green Ocean Corp Bhd, after Focus Dynamics acquired the entire 351.93 million new shares earmarked under Green Ocean’s private placement to raise money which will finance Green Ocean’s planned diversification into rubber glove manufacturing.
Green Ocean said in a Bursa Malaysia filing today that the private placement has been completed following the listing and quotation of the 351.93 million placement shares, being the first and final tranche of the private placement, on the ACE Market of Bursa today.
According to food and beverage company Focus Dynamics and Green Ocean’s Bursa filings yesterday (Aug 26), Focus Dynamics via its wholly-owned subsidiary Focus Dynamics Centre Sdn Bhd had acquired the 351.93 million new shares yesterday, which constitutes 16.667% of Green Ocean’s expanded number of issued shares of 2.11 billion, following the private placement.
"Private placement of up to 20% of the issued shares of Green Ocean,” said Green Ocean, the existing businesses of which include palm kernel crushing to produce crude palm kernel oil, besides the supply of palm kernel shell-based biomass.
Focus Dynamics said in its Bursa filing that Focus Dynamics Centre had yesterday subscribed for the 351.93 million placement shares in Green Ocean for RM8.13 million or 2.31 sen each.
"The purchase consideration was based on the issue price of 2.31 sen per placement share of Green Ocean which (was) fixed and announced to Bursa on 18 August 2021.
"The subscription is in line with the company’s (Focus Dynamics) strategies" to strengthen its healthcare division by being involved in rubber glove distribution, Focus Dynamics said.
Focus Dynamics' website claims that the company is a fast-growing food and beverage, entertainment and lifestyle group.
"As an agile and vibrant food and beverage player, we continuously adopt and embrace digital technologies in our businesses. Integration of digital payments, food delivery services and e-commerce are among some of the group’s efforts to leverage the newest technologies,” the company claimed.
In the Bursa filing, Focus Dynamics said its investment in Green Ocean was funded entirely by Focus Dynamics’ internally-generated funds.
"The board of Focus (Dynamics), having considered all aspects of the investment, is of the opinion that the investment is in the best interest of the company,” the firm said.
Green Ocean’s intention to undertake the private placement of 351.93 million new shares was first announced on June 14, 2021.
According to Green Ocean’s filing with Bursa on that day, Green Ocean had then proposed to undertake the private placement of new shares, representing 20% of the company’s existing number of issued shares to independent third-party investors to be identified.
The private placement of new shares was needed to raise more money to finance Green Ocean’s rubber glove manufacturing venture, according to the company.
"After due consideration of the various methods of fund raising, the board is of the opinion that the proposed private placement is the most appropriate avenue of fund raising at this juncture as it would enable the group to raise additional funds expeditiously without incurring additional interest expense from bank borrowings, thereby minimising any potential cash outflow in respect of interest servicing costs.
"Upon completion of the proposed private placement, the enlarged capital base (of 2.11 billion shares) is also expected to further strengthen the financial position of the company,” Green Ocean said.
At 5pm today, Green Ocean’s share price closed up 0.5 sen or 20% at three sen which translates into a market capitalisation of about RM63.3 million.
Focus Dynamics was unchanged at five sen, giving the company a market capitalisation of about RM318.5 million based on the company’s 6.37 billion issued shares.