KUALA LUMPUR: Vivocom International Holdings Bhd today signed a heads of agreement (HoA) to a RM1.45 billion investment from the United States-based Strattner Alternative Credit Fund LP.
Strattner is part of the global alternative investment group with expertise in alternative investments and complex financing transactions.
Strattner Group Corp is a publicly-traded alternative investment group with offices in the US, Europe and Asia.
Its Financial Industry Regulatory Authority and the US' Securities and Exchange Commission-registered entity Strattner Capital Management LLC manages Strattner and other private funds.
Vivocom and Strattner, in a joint statement today, said the capital injection was a starting point for a long-term strategic partnership to advance the former's growth via merger and acquisition (M&A) as well as to fund its projects in construction, property development and minerals trading.
Vivocom chief executive officer Datuk Seri Chia Kok Teong said Strattners Group's investment was "perfect" as the company sought to grow via the M&A route, buying companies with game-changing and disruptive strategies in their businesses.
"This investment will also be used as working capital for the recently-ventured sand and minerals trading business," Chia said in the statement.
Strattner CEO Timo Strattner said: "Strattners is proud and delighted to be making a long-term investment in Vivocom as we believe the company has tremendous growth potential under the visionary and passionate leadership of Datuk Seri Chia."
Under the heads of agreement on the investment filed with Bursa Malaysia today, Strattner will buy up to US$350 million (about RM1.45 billion) of Vivocom shares or in aggregate, not more than nine per cent of its issued share capital from time to time over 18 months from the date of signing the definitive documentations.
In return, Vivocom will have the right to draw down capital as required.
"The company will control the timing and amount of capital drawn down under this agreement.
This method of fundraising provides management with a flexible financing tool and allows Vivocom the ability to deploy cash on a need basis only as opportunities arise," it said.
