Retail group F J Benjamin Holdings (FJB) will be raising some $3 million to provide additional working capital as it explores expansion opportunities as regional economies recover from Covid-19.
Western Properties, a member of Far East Organization (FEO) group of companies, has agreed to subscribe for 120 million new FJB shares at 2.5 cents each. . FJB will also explore strategic opportunities to collaborate with the FEO for new businesses as well as within its present brand portfolio.
The issue was negotiated on a willing-buyer, willing-seller basis and takes into account FJB’s historical trading performance and prevailing market conditions. The share placement will require specific approval from shareholders at an extraordinary meeting to be convened by FJB.
"After nearly two years of disruptions caused by Covid-19, we are beginning to see a return in consumer spending as countries in Southeast Asia open their borders and ease social distancing measures. We expect to see an increase in traffic to the malls and are positioning ourselves for expansion," says FJB CEO Nash Benjamin.
To recap, Western Properties became a substantial shareholder of FJB earlier this year following the conversion of warrants into shares. With the placement, its stake will increase from 7.4% to 16.7%, making it the second largest shareholder of FJB after the Benjamin family.
Earlier this year, FJB also made its move from the Mainboard of SGX to Catalist, while taking itself off the SGX watchlist.
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Shares in FJB closed at 2.1 cents on Dec 21.
Photo: The Edge Singapore/ Albert Chua
