Sam Goi set to pump $14m into JEL Corp

By Melissa Tan
Apr 3, 2012
The Straits Times

Share purchase would raise his direct holding in firm to 57.75%
LOCAL food tycoon Sam Goi Seng Hui is set to pump an additional $14 million into mainboard-listed consumer goods distributor JEL Corp (Holdings), which is on the Singapore Exchange's (SGX) watch list.

Mr Goi, 62, will buy two billion ordinary shares in the company at 0.6999 cents apiece, JEL Corp told the SGX on Friday.

If his purchase goes through, these shares will make up around 50.3 per cent of the firm's enlarged share capital.

Mr Goi, known as the 'Popiah King' for building up frozen popiah skin maker Tee Yih Jia Food Manufacturing, already owns around 15 per cent - or nearly 296.4 million shares.

The latest share subscription would bring his direct holding in JEL to around 57.75 per cent. Mr Goi's purchase of the additional stake is subject to the Securities Industry Council granting him a 'whitewash waiver', the company noted in its filing.

This waiver removes his obligation to make a mandatory takeover offer for the remaining shares of JEL.

His purchase is also subject to shareholder approval at an extraordinary general meeting to be held later.

JEL Corp said Mr Goi's 'increased involvement in the company will be beneficial and strategic', citing his 'strong business connections, influence and expertise'.

It added that Mr Goi's agreement to subscribe to the shares would 'expand the group to a larger economic size and market capitalisation'.

This, in turn, would meet the minimum market capitalisation for the firm to qualify to be taken off the watch list, it stated.

Mr Goi said in a statement yesterday: 'JEL has a viable business in marketing and distribution of IT, photography and imaging products, as well as timepieces in Central Asia, the Middle East and Indochina. I think JEL has demonstrated good ability in handling various businesses in these developing markets, and believe that it can grow even more in China, where I intend to facilitate its growth.'

Last month, it was reported that Mr Goi would sell his 22.07 per cent stake in China Healthcare, the target of a buyout offer.
He also sold his 7 per cent stake in Asia Environment Holdings last year when its chief executive, Mr Wang Hongchun, bought out the China- based wastewater treatment company.

The proceeds from his JEL share subscription would be used for working capital and for potential opportunities for mergers and acquisitions, JEL Corp said.

It went on the SGX watch list in March 2010 after posting pre-tax losses for three consecutive financial years and its market cap fell to $11.9 million, below the $40 million watch-list threshold.

The counter rose 0.7 cents to 1.8 cents yesterday.

melissat@sph.com.sg