Between May 11 and 12, Transit-Mixed Concrete : 570 0% executive director Lee Sai Sing acquired 833,400 shares at 14.5 cents per share. With a consideration of S$120,843, this increased his direct interest in the provider of concrete pumping services and waste management, from 55.07 per cent to 55.87 per cent. His preceding acquisition was on Dec 21, with 63,400 shares acquired at 13.9 cents per share.

 

Lee has extensive experience in investing in unlisted and listed Asian equities and serves as independent director at Maxi-Cash Financial Services Corporation. He is involved in advising corporations in restructurings, pre-initial public offerings and initial public offerings and has worked in the fund management industry for many years in major financial institutions like GIC, BNP Paribas Private Bank and Maybank-Kim Eng.

 

On Apr 27, the company reported that turnover grew by 64 per cent to S$8.24 million for the year ended Feb 28, compared with S$5.01 million in the previous year.

 

Transit-Mixed Concrete has entered into a placement agreement with seven investors, who have collectively agreed to subscribe to 34.7 million new ordinary shares at an issue price of 14 cents per share for a total of $4.86 million.

 

The issue price represents a 7.7% premium to Transit-Mixed Concrete&rsquo s volume-weighted average price (VWAP) of 13 cents as of May 18, the last day on which shares of the company were traded.

 

The placement shares represent approximately 49.9% of the existing issued and paid-up share capital (excluding treasury shares) of the company as of May 25. 

 

Post-completion, the new shares will represent approximately 33.3% of the enlarged issued and paid-up share capital (excluding treasury shares) of the company.

 

Net proceeds are estimated to total $4.81 million, which will be used in its entirety for the expansion of the business and working capital purposes.

The seven investors include the chairman of Mainboard-listed Tai Sin Electrical Bobby Lim Chye Huat as well as Chua Keng Woon, an independent director on the boards of Hai Leck Holdings and Asiamedic. Both Lim and Chua each subscribed to 11 million of the new shares for $1.54 million respectively.

 

The remaining investors listed include Lim Ching Tiew, Lim Siang Hwa, Too Lee Soong. All the investors were states as subscribing to the placement &ldquo for personal investment reasons&rdquo .

 

A new controlling shareholder at Transit-Mixed Concrete is making a mandatory offer for the remaining shares of the company he does not yet own.

 

Lee Sai Sing, executive director of Maxi-Harvest Group, on Feb 19 bought over 71.36% of the company from existing shareholders at 14 cents per share, or $6.95 million.

Transit-Mixed Concrete last traded at 8 cents before a trading halt was called on Feb 18.

 

While Lee plans to maintain the company&rsquo s listing, he is obliged to make the same offer for the remaining shareholders. Lee has no plans to revise the offer price.

The sellers were Kheng Leong Company (Private), a private investment vehicle of the Wee family who controls United Overseas Bank Hee Geok Lin, acting in the capacity as the administrator of the estate of the late Chua Eng Him the company&rsquo s former CEO, and Yap Boh Lim, a former director of the company who retired last August.

 

Transit-Mixed Concrete was founded in 1979 and was listed since Nov 2009. It exited the mixed concrete business in 2019 and its main business activities are now in supplying concrete pumping services and waste management services.

 

The company has been loss-making for the past three financial years. It last made a profit of $1.9 million for FY2017 ended Feb 29 2017. For the most recent full year FY2020, it was $1.75 million in the red.

 

For the most recent six months ended Aug 31 2020, it incurred losses of $843,000, slightly lower than $869,000 booked in the year earlier. Revenue in the same period dropped 61% y-o-y to $1.64 million, as the circuit breaker halted construction activities.