Ezra will bag net proceeds of approximately $65.7m from selling 4.17% or 40m shares of its existing share capital of Ezion, for a total consideration of SGD90m ($71.2m) or SGD2.25 per share – a 4.9% discount to the traded average price of SGD2.37 over 30 May.
“The divestment is part of Ezra's ongoing capital management efforts to enhance shareholder value through the realization of our investments. This is in line with the company's initiative to rationalise its non-core assets and continue to focus on execution in its core businesses,” Ezra said.
The company intends to use the sale proceeds to meet its working capital needs, reduce debt and fund growth and operations.
The divestment will be made via a placement fully underwritten by Singapore's DBS Bank.
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