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SINGAPORE: Mainboard-listed forestry and construction firm United Fiber (UniFiber) said Wednesday it has sealed an investment deal that will see an injection of S$178 million dollars.
The firm said the investor, Falcon Capital Global, will subscribe to some 3.56 billion of UniFiber's shares at a price of 5 cents a piece.
This will see Falcon take a majority stake of 51.5 per cent of the enlarged total number of UniFiber's shares.
UniFiber said part of the proceeds, about US$65 million, will be used to fund the proposed acquisition of PT Kutai Chip Mill.
Another US$20 million will be used for the expansion of UniFiber's wood chip business while the rest will be used as working capital.
Prior to the investment, UniFiber's independent auditors issued a report drawing attention to the firm's bottomline.
For the financial year ended in December 2009, the group made a loss of some US$55 million and was in a net liability position of US$27.6 million.
-CNA/wk
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