Sino Grandness gets short-term liquidity relief as new investors jump in

The new placement raised $37m for the firm.

Sino Grandness welcomed two new strategic investors following its recent private placement of 86m new shares. Thoresen Thai Agencies Public and the PM Group have become Sino Grandness’ strategic investors, after a placement price of $0.61 per share.

Both firms belong to the Mahagitsiri family in Thailand, and will together control 13% of Sino Grandness. MayBank Kim Eng notes that the placement price as at a 9% discount to Sino Grandness’ last close.

“The placement raised SGD37m (CNY185m) for Sino Grandness. This should ease its short-term liquidity pressure, partly arising from potential CB redemptions this month. Longer term, it is too early to ascertain any synergies from the new investors. PM Group is a big conglomerate in Thailand, with its own F&B business. It makes and distributes Nescafé in Thailand. However PM group uses TTA, which is basically a shipping company but trying to diversify into other sectors, as the main platform to carry out the acquisition. We think this might not be the best structure for Sino Grandness,” stated Maybank Kim Eng.