Mainboard-listed CNA Group says Mitsubishi Electric Asia Pte Ltd (MEAP), the wholly-owned Singapore subsidiary of Mitsubishi Electric Corporation (MELCO), has agreed to subscribe to 35 million new CNA shares or 14.8% or of CNA’s enlarged share capital for $6.7 million.

This works out to be 19 cents per subscription share, a 3.8% discount to the weighted average price of CNA’s shares traded on Jan 17.

MELCO, listed on the Tokyo Stock Exchange, is a world leader in the manufacture, marketing and sales of electrical and electronic equipment used in industrial technology, transportation and building equipment, consumer electronics, information processing and communications, energy, space development and satellite communications.

The alliance will bring together Mitsubishi Electric Group’s extensive portfolio of integrated control and automation products and CNA's expertise as a system integrator of these products to existing and new markets.

CNA says it plans to use the net proceeds from the proposed placement for its operating capital purposes and to fund future growth and expansion of the company.