Mainboard-listed CNA Group, the enabler of intelligent buildings and facilities, announced today that it has signed a letter of intent for the placement of new CNA shares to “a company which is a member of an Asian conglomerate with international operations and presence”.

CNA Group says the deal is presently under due diligence after which the company will announce its final decision to proceed with the placement.

If finalised and completed, the private placement is expected to represent at least 20% of the enlarged share capital of CNA.

The group plans to use the net proceeds from the private placement to fund ongoing core business operations and pursue other existing strategic growth opportunities.

CNA and the potential investor will leverage on each other’s network, particularly in Vietnam and China. CNA will be able to accelerate its growth in the fast growing Vietnam market and expand its business in China. The potential investor will also be able to develop and improve its volume of business in these markets.