VIVOCOM International Holdings Bhd has inked a heads of agreement with US-based Strattner Alternative Credit Fund LP (Strattner Fund) for an investment up to US$350 million (RM1.45 bil) in Vivocom.
Strattner Fund is part of the global alternative investment group with expertise in alternative investments and complex financing transactions while the Strattner Group Corp is a publicly-traded alternative investment group with offices in the US, Europe and Asia.
Its Financial Industry Regulatory Authority (FINRA) and the US Securities and Exchange Commission (SEC)-registered entity Strattner Capital Management LLC manages Strattner Alternative Credit Fund LP and other private funds.
Both Vivocom and Strattner view this capital allocation as an investment into the company as well as being a starting point for a long-term strategic partnership to advance Vivocom’s growth via merger & acquisition (M&A) activities and to fund its projects in construction, property development and minerals trading.
“We are proud yet humbled with the vote of confidence shown by Strattners Group in Vivocom by their commitment to invest in the company for the long term,” commented Vivocom’s CEO Datuk Seri Chia Kok Teong.
“The timing is perfect as we seek 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.”
Meanwhile, Strattner’a CEO Dr Timo Strattner said Strattners is delighted to make a long term investment in Vivocom as it believes that the company has tremendous growth potential under the visionary and passionate leadership of Chia.
A filing with Bursa Malaysia today shows that the salient terms of the heads of agreement entails the investor committing to purchase Vivocom’s shares up to US$350 mil (RM1.45 bil) or not more than 9% of the company’s issued share capital of 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 by controlling the timing and amount of capital drawn down under this agreement. This method of fundraising provides the Vivocom management with a flexible financing tool while allowing the company to deploy cash on a need basis when an opportunities arises.
At 2.48pm, Vivocom was down 6 sen or 10.53% to 53.5 sen with 71.12 million shares traded, thus valuing the company at RM462 mil. – July 1, 2021