by PRIYA VASU / pic source: Vivocom FB
VIVOCOM International Holdings Bhd has entered into heads of agreement (HoA) with the US-based Strattner Alternative Credit Fund LP for a potential investment of up to RM1.45 billion in Vivocom International Holdings Bhd.
Strattner is part of the global alternative investment group with expertise in alternative investments and complex financing transactions, Vivocom noted in a filing to Bursa Malaysia yesterday.
Vivocom added that Strattner can buy shares in Vivocom with the money raised used to advance Vivocom’s growth via merger and acquisition activities and to fund its projects in construction, property development and minerals trading.
The salient terms of the HoA entails Strattner committing to buy Vivocom’s shares worth up to US$350,000,000 (RM1.45 billion) or in aggregate, not more than 9% of the issued share capital of the company from time to time, for a period of 18 months from the date of signing the Definitive Documentations.
In return, Vivocom shall have the right to draw down capital as required including the timing and amount of capital.
Vivocom stated that this method of fundraising provides management with a flexible financing tool and allows the company the ability to deploy cash on a need basis only as opportunities arise.
Strattner Group Corp is a publicly-traded alternative investment group with offices in the USA, Europe and Asia.
The Financial Industry Regulatory Authority and the US Securities and Exchange Commission registered entity Strattner Capital Management LLC manages Strattner Alternative Credit Fund and other private funds.
In a statement, Vivocom CEO Datuk Seri Chia Kok Teong (picture) said the timing is perfect as the company seeks to grow via the M&A route and acquire companies with game-changing and disruptive strategies in their businesses.”
“Proceeds raised from this investment deal will also be used as working capital for the recently-ventured sand and minerals trading business,” Chia added.
Vivocom shares fell 5.5 sen or 9.65% to 51.5 sen at close yesterday