Hong Kong Exchanges and Clearing Limited and The Stock Exchange of Hong Kong Limited take no responsibility for the contents of this announcement, make no representation as to its accuracy or completeness and expressly disclaim any liability whatsoever for any loss howsoever arising from or in reliance upon the whole or any part of the contents of this announcement.
Ritamix Global Limited
(Incorporated in the Cayman Islands with limited liability)
(Stock Code: 1936)
DISCLOSEABLE TRANSACTION IN RELATION TO
INVESTMENT IN BOND FUND AND UPDATE ON USE OF PROCEEDS
On 28 August 2020, the Company has subscribed for USD Hedged-class Units of Affin Hwang Select Bond Fund for an aggregate amount of US$5 million (equivalent to approximately RM20,850,000).
As the highest applicable percentage ratio (as defined under Rule 14.07 of the Listing Rules) in relation to the Subscription exceeds 5% but is less than 25%, the Subscription constitutes a discloseable transaction of the Company and is subject to the reporting and announcement requirements under Chapter 14 of the Listing Rules.
THE SUBSCRIPTION
On 28 August 2020, the Company has subscribed for USD Hedged-class Units of Affin Hwang Select Bond Fund for an aggregate amount of US$5 million (equivalent to approximately RM20,850,000).
The key terms of the Subscription are summarised below:
Name of the Bond Fund: | Affin Hwang Select Bond Fund |
Manager: | Affin Hwang Asset Management Berhad |
Trustee: | HSBC (Malaysia) Trustee Berhad |
Investment objective | The investment objective of the Bond Fund is to provide investors with a steady |
and strategy: | income stream over the medium to long-term period through investments primarily in |
bonds and other fixed income securities | |
Asset allocation: | Minimum 70% in bonds and maximum 30% in money market instruments and/or |
deposits | |
Subscription amount: | US$5 million (equivalent to approximately RM20,850,000) |
Distribution policy: | Subject to the availability of income, the Bond Fund will distribute income on a |
quarterly basis | |
Term: | No fixed term |
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Benchmark: | Maybank 12-month fixed deposit rate |
Redemption: | Unit Holders may request to redeem their investments in the Bond Fund at any point |
of time by completing the repurchase application form and returning it to the | |
Manager on any Business Day. Redemption payments will be made within 14 days | |
from the day the repurchase request is received by the Manager |
INFORMATION OF THE BOND FUND, THE MANAGER AND THE TRUSTEE
The Bond Fund is an open-ended fixed income fund, issued and managed in-house by the Manager. The Bond Fund has appointed the Manager for the investment management and marketing of the Bond Fund, servicing the Unit Holders' needs, keeping proper administrative records of the Unit Holders and the Bond Fund, and ensuring compliance with stringent internal procedures and guidelines of relevant authorities. According to the prospectus of the Bond Fund dated 18 July 2017, the Securities Commission Malaysia has authorised the Bond Fund and the prospectus of it has been registered with the Securities Commission Malaysia.
The Manager was incorporated in Malaysia on 2 May 1997 under the Companies Act 1965 (Laws of Malaysia) and began operations as an asset management firm in 2001.
The Bond Fund has appointed the Trustee as the trustee and custodian of the assets of the Bond Fund and to safeguard the interests of the Unit Holders of the Bond Fund. The Trustee is a company incorporated in Malaysia in 1937 and registered as a trust company under the Trust Companies Act 1949 (Laws of Malaysia).
As at the date of this announcement, to the best of the Directors' knowledge, information and belief, having made all reasonable enquiries, the Bond Fund, the Manager, the Trustee and their respective ultimate beneficial owners are independent of and not connected with the Company or any connected persons (as defined under the Listing Rules) of the Company.
INFORMATION OF THE GROUP
The Company is an exempted company incorporated in the Cayman Islands with limited liability. The Group is based in Malaysia and principally engages in (i) distribution of animal feed additives and, to a lesser extent, human food ingredients; and (ii) manufacturing of animal feed additives premixes.
REASONS FOR AND BENEFITS OF THE SUBSCRIPTION AND UPDATE ON THE USE OF PROCEEDS
The Subscription will be financed by the unutilised net proceeds of the Company raised from the Listing as there has been a delay in utilisation of such net proceeds mainly due to the imposition of the Movement Control Order by the Malaysian government as mentioned in the interim results announcement for the six months ended 30 June 2020 of the Company dated 21 August 2020. In this regard, with a view to improving the efficiency of the use of the Company's temporarily available proceeds from the Listing and as the interest rates of demand deposit offered by licenced banks are relatively low, on the basis that the Company shall ensure that there will be no adverse impact to the utilisation of the net proceeds and there will be no change in the final use of the net proceeds as planned, the Board has resolved to temporarily allocate part of the temporarily available proceeds to invest in the Bond Fund which the Board considers as a conservative investment with a satisfactory expected return, acceptable risk and high liquidity. The Subscription is expected to increase the Group's income, improve
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the efficiency and effectiveness of the use of the Company's temporarily available proceeds, further enhance the overall financial performance of the Group and generate better investment return to the Company and its Shareholders as a whole. The Company will redeem the investment in the Bond Fund at any point of time where appropriate and adhere to the expected timeline to utilise the net proceeds for the purposes set out in the section headed ''Future Plans and Use of Proceeds'' in the Company's prospectus dated 24 April 2020 (the ''Prospectus''), subject to the Malaysian government's policy.
The Directors consider that the terms and conditions of the Subscription are fair and reasonable and on normal commercial terms, and the Subscription is in the interests of the Company and its Shareholders as a whole. The Company will redeem part or all of the investment in the Bond Fund when the Company utilises the net proceeds according to the disclosure made in the Prospectus.
LISTING RULES IMPLICATIONS
As the highest applicable percentage ratio (as defined under Rule 14.07 of the Listing Rules) in relation to the Subscription exceeds 5% but is less than 25%, the Subscription constitutes a discloseable transaction of the Company and is subject to the reporting and announcement requirements under Chapter 14 of the Listing Rules but is exempt from the Shareholders' approval requirement under Chapter 14 of the Listing Rules.
DEFINITIONS
In this announcement, unless the context otherwise requires, the following terms shall have the following respective meanings:
''Board'' | the board of Directors |
''Bond Fund'' | Affin Hwang Select Bond Fund |
''Business Day'' | a day on which the Bursa Malaysia, the stock exchange operated by Bursa |
Malaysia Securities Berhad, is open for trading | |
''Company'' | Ritamix Global Limited, an exempted company incorporated in the Cayman |
Islands with limited liability, the issued Shares of which are listed on the | |
Stock Exchange (stock code: 1936) |
''Director(s)'' ''Group'' ''HK$'' ''Hong Kong''
''Listing''
the director(s) of the Company
the Company and its subsidiaries
Hong Kong dollars, the lawful currency of Hong Kong
the Hong Kong Special Administrative Region of the People's Republic of China
the initial listing of the Shares in issue on the Main Board of the Stock Exchange on 13 May 2020
''Listing Rules'' | the Rules Governing the Listing of Securities on the Stock Exchange |
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''Manager''
''NAV''
''RM''
''Share(s)''
''Shareholder(s)''
''Stock Exchange''
''Subscription''
''Trustee''
''Unit(s)''
Affin Hwang Asset Management Berhad, a company incorporated in Malaysia with limited liability
means the value of the Bond Fund's assets less the value of the Bond Fund's liabilities at a particular valuation point
Malaysian ringgit, the lawful currency of Malaysia
ordinary share(s) with a par value of HK$0.01 each in the share capital of the Company
holder(s) of the Share(s)
The Stock Exchange of Hong Kong Limited
the subscription by the Company of USD Hedged-class Units of the Bond Fund for an aggregate amount of US$5 million
HSBC (Malaysia) Trustee Berhad, a company incorporated in Malaysia with limited liability
means a measurement of the right or interest of a Unit Holder in the Bond Fund and where multiple classes of Units are issued, means a unit of that class
''Unit Holder(s)'' | means a person/corporation registered as the holder of a Unit or Units |
''USD Hedged-class Unit(s)'' | a class of Units of the Bond Fund |
''US$'' | United States dollars, the lawful currency of United States of America |
''%'' | per cent |
By order of the Board
Ritamix Global Limited
Dato' Sri Lee Haw Yih
Chairman and Executive Director
Hong Kong, 28 August 2020
As at the date of this announcement, the executive Directors are Dato' Sri Lee Haw Yih and Datin Sri Yaw Sook Kean; the non-executive Director is Mr. Lee Haw Shyang; and the independent non-executive Directors are Ms. Ng Siok Hui, Mr. Lim Chee Hoong and Mr. Lim Heng Choon.
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