Support ... Mar10

Supportive International Holdings Bhd will raise US$35mil (RM120mil) over the
next three years for working capital via the issuance of new shares to new US-based stakeholder, the Global Emerging Markets Group (GEM).

GEM had offered to pay RM120mil for up to 19.9% equity stake in the enlarged capital of Supportive, which has an existing paid-up share capital of 218 million shares.

It had agreed to the offer and would sign the final subscription agreement within a month. Under the terms and conditions of the offer, GEM would take up to 19.9% in Supportive in tranches over the next three years at the discretion of Supportive. How many shares the 19.9% stake will translate into will depend on Supportive’s share price at the time of issue.

GEM should be able to complete the share acquisition by 2013, generating RM120mil for Supportive to be used as working capital.