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LOGOS to become shareholder of Aspen subsidiary for RM296.7m

SINGAPORE (Jan 19): Aspen Group’s 30% associated company Global Vision Logistics (GVL) and leading real estate specialist LOGOS SE Asia has, on Jan 18, entered into a subscription agreement for an aggregate subscription consideration of RM296.7 million.

Under the agreement, LOGOS will subscribe for 3.75 million shares in GVL at an issue price of RM79.11 per subscription share, which is equivalent to 60% of the issued and paid-up capital of GVL following the subscription.

Upon completion of the subscription, the shareholders of GVL and LOGOS will also enter into a shareholders’ agreement to set out their rights and obligations as shareholders in the business and affairs of GVL.

Projects under GVL include the phased development of an integrated logistics and warehousing facility on three pieces of land collectively measuring 71 acres in Section 16, Shah Alam, in Selangor, Malaysia.

GVL will act as the special purpose vehicle to undertake the project which will be carried out in phases. The total development area is expected to be 745,000 sqm and the gross leaseable area for the five warehouse blocks will be approximately 505,000 sqm.

Upon its completion, the facility is expected to be one of the largest one-stop logistics solutions provider in Malaysia.

The subscription consideration will be used by GVL for debt restructuring purposes, which includes the settlement of existing banking facilities and the redemption of existing redeemable preference shares in GVL.

The redemption of the shares and dividend distribution to Aspen Vision Properties is expected to total up to some RM84 million.

“We are pleased to have LOGOS as a partner for the project. The logistics and warehousing industry is one of the fastest growing industry due to the rise in demand from the e-commerce business. With LOGOS’s experience and track record, we are confident of developing a world class facility and to attract a good tenant mix,” said Datuk M Murly (pictured), Aspen’s president and CEO.

Shares in Aspen closed flat at 25 cents on Jan 15.

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