SINGAPORE (Apr 30): Oxley Holdings has agreed to subscribe to 97 million new shares at 24 cents each in Aspen (Group) Holdings via a placement exercise, for a total of $23.28 million.

The transaction will see Oxley own a 10.07% stake in Aspen’s enlarged share capital following the allotment and issuance of the placement shares.

The issue price represents a 14.72% premium to the volume weighted average price of 20.92 cents for each share of Aspen, based on trades done on SGX on Apr 27 – the last full market day before the signing of the placement agreement on Monday.

As at 1.34pm, shares of Oxley are trading half a cent up at 48.5 cents, and shares of Aspen are trading 1.5 cents up, or 7.3% higher, at 22 cents.

In a filing to SGX, Oxley says it believes there are synergies between the two property development and investment companies.

“We look forward to leveraging on this partnership with significant collaborations with Aspen and their global partners in the region, that will benefit all parties,” says Ching Chiat Kwong, Oxley’s executive chairman and chief executive officer.

Aspen says it intends to use 70% of the net proceeds of approximately $23.2 million for the acquisition of land banks and future developments, while the remaining 30% will be used for working capital.

“The strategic partnership with Oxley will forge a long-term and mutually beneficial relationship that will enable the group to progress to another level of growth. We believe the synergy between Aspen and Oxley will unlock many business and development opportunities for both companies,” says Dato’ M. Murly, Aspen’s president and group chief executive officer.