On Jul 8, Hong Lai Huat group executive deputy chairman and group CEO Ong Bee Huat acquired 3,999,000 shares at S$0.042 apiece. This increased his total interest from 43.30 per cent to 44.07 per cent. Responsible for the group&rsquo s overall strategic direction and planning as well as business development, his previous acquisition was a married deal with five million shares acquired at S$0.04 apiece back in May 2024.  

 

At the same time, Hong Lai Huat Group is strategically expanding its footprint in Cambodia, with two land banks &ndash an 11,000 square metre (sq m) plot in Phnom Penh and a 150,000 sq m parcel in Sihanoukville &ndash reserved for future residential or mixed-use developments aligned with urban growth and market demand. These assets form part of the group&rsquo s long-term vision to capitalise on Cambodia&rsquo s economic momentum and reinforce its position as a leading real estate developer in South-east Asia.

On Jan 20, real estate and property developer Hong Lai Huat Group : CTO 0% announced it will seek to issue and allot 40,503,000 new ordinary shares to group general manager and executive director Dylan Ong at the market price of the company&rsquo s shares, to be determined on placement date based on a formula as disclosed in its bourse filing.

 

These shares will represent approximately 7.82 per cent of the existing issued share capital and 7.25 per cent of the enlarged share capital. The rationale for the proposed placement is to provide Ong with an equity stake in the group, aligning his interests with the long-term interests of the company and its shareholders.

 

Ong was appointed to the board in September 2020, and currently does not own any shares in the company. He is responsible for the strategic direction, operation planning, sales and marketing, as well as business development for the group&rsquo s agriculture division in Cambodia. Additionally, he plays a crucial role in strengthening the group&rsquo s market penetration and business presence in the Indochina region and beyond.

 

Ong&rsquo s father and brother also hold board positions and interests in Hong Lai Huat. His father, deputy chairman and CEO Dr Ong Bee Huat, has a 43.3 per cent total interest, while his brother, Ryan Ong, maintains a 3.98 per cent interest.

 

With Dylan Ong acting in concert with his family, their collective holdings will increase from 47.28 per cent to 51.10 per cent of the enlarged issued and paid-up share capital of the company. If the proposed placement is completed, Dylan Ong and the concert parties would be required to make a general offer for the company under Rule 14 of the Singapore Code on Takeovers and Mergers.

 

However, the group general manager has obtained a waiver from the Securities Industry Council exempting him from this mandatory obligation arising from the proposed placement. This is subject to certain conditions, which includes the approval by a majority of the group&rsquo s independent shareholders at a general meeting waiving their rights to receive a general offer from Dylan Ong before the placement.

 

Hong Lai Huat announced, on Jan 20, that it intends to issue and allot Ong Jia Jing, Dylan, 40.5 million new ordinary shares in the capital of the company. The shares will represent 7.82% of the company&rsquo s existing share capital and 7.25% of the enlarged share capital.

 

According to the company, Ong does not currently own any shares in the company, and providing him with an equity stake will &ldquo align his interest with the long-term interest of the company and its shareholders&rdquo . Ong has been an executive director of the company since 2020. According to Hong Lai Huat&rsquo s website, he is also the group' s general manager.

 

The shares will be issued at a price that references Hong Lai Huat&rsquo s weighted average trading price of the shares over a 14-day period before the new shares are issued.

 

The proposed placement is not underwritten and is undertaken under the exemption under Section 272B of the Securities and Futures Act 2001. The section states that the offers are made to no more than 50 people within 12 months and that none of the offers are accompanied by any offers or advertisements calling attention to the offer or intended offer. It also states that &ldquo no selling or promotional expenses are [to be] paid or incurred in connection with each offer&rdquo with the exception fees incurred for administrative or professional services, or by way of commission or fee for services rendered by parties including the holder of a capital markets services licence and an &ldquo exempt person in respect of dealing in capital markets products that are securities or securities‑ based derivatives contracts&rdquo .

 

In its Jan 20 filing, Hong Lai Huat notes that Ong is acting in concert with Ong Bee Huat, the founder and executive director of the company Ong Bee Huat&rsquo s spouse Lau Yen Eng and Ong Jia Ming, the executive director of the company. Ong Bee Huat owns a 43.3% stake, while Lau and Ong Jia Ming hold respective stakes of 2.01% and 3.98%. Including Ong&rsquo s stake, all four collectively own 47.28% of the voting rights of the company.

 

Following the proposed placement, Ong and his family will hold a 51.1% stake in the company&rsquo s enlarged share capital. If completed, the proposed placement meant that Ong and his family would have had to make a general offer for the company&rsquo s shares under Rule 14 of the Singapore Code on Take-overs and Mergers.

 

Ong has since obtained and received a waiver (also known as a whitewash waiver) on Jan 20 from the Securities Industry Council to exempt him from the obligation to make a general offer. The waiver is conditional upon several factors including receiving the approval of majority of Hong Lai Huat&rsquo s shareholders to waive off their rights to receive a general offer at an extraordinary general meeting (EGM). It is also conditional about Ong and his family not acquiring shares or instruments convertible into and options in respect of the shares during the period between the proposed placement and the date of approval from the company&rsquo s shareholders. Hong Lai Huat will also have to appoint an independent financial adviser to advice its independent shareholders on the matter.

 

According to Hong Lai Huat, the proceeds raised will go towards the company&rsquo s general working capital.

Mainboard-listed Hong Lai Huat has entered into a strategic term sheet with co-living operator The Assembly Place.

 

The term sheet will see The Assembly Place managing Hong Lai Huat&rsquo s real estate and property development projects in Cambodia. The partnership will also introduce the co-living concept to the country for the first time.

 

In a joint release issued on Nov 28, both companies say they will focus on finalising the key objectives within the next 60 days before entering into a binding agreement. Some of the key objectives include conducting feasibility studies for the fitting out of available units in Hong Lai Huat&rsquo s Royal Group Platinum development in Cambodia.

 

The group will also discuss ways to market Hong Lai Huat&rsquo s available commercial shop-house units at Royal Group Platinum. In addition, the group says it intends to leverage The Assembly Place&rsquo s network to establish new sales channels in Singapore, Hong Kong, and Greater China&rsquo s first-tier markets for Hong Lai Huat&rsquo s completed and upcoming projects. The partnership will also see ongoing after-sales asset management services and the creation of jobs in local communities.

 

According to Hong Lai Huat&rsquo s website, the development is a mixed residential and commercial project featuring 851 residential and 50 shophouse units. It is located some 20 minutes from Phnom Penh International Airport, and is surrounded by 16 international schools and six sports facilities. It is also 10 minutes away from Aeon Mall 2, which is currently the biggest shopping mall in Phnom Penh.

 

Ong Jia Jing, executive director of Hong Lai Huat said he was &ldquo thrilled&rdquo by the partnership, saying that the collaboration will enable the group to &ldquo provide top-tier asset management services to [its] investors and buyers in Cambodia, giving them the confidence they need when purchasing units in [its] developments.&rdquo

 

To The Assembly Place&rsquo s CEO Eugene Lim Ying Jie, the partnership aligns with its strategy of expanding the co-living concept locally and internationally.

 

&ldquo With Hong Lai Huat&rsquo s group high quality and thoughtfully designed developments and TAP&rsquo s extensive experience in the co-living sector, we believe that we can deliver exceptional value to the purchasers,&rdquo he says.

 

The signing ceremony took place at the CAMPUS by The Assembly Place on Nov 28.