First Capital Group (First Capital) has rejected an offer of $3 million from a group of investors in favour of a secondary offer.
The first offer from an unnamed group of investors was pending shareholder approval, however a new offer of $3 million by RS Asset Management Private has been accepted.
Under the terms of the new deal, First Capital will gain access to the $3 million immediately, with the funds going towards refinancing the senior debt portion of the group's Gulf Harbour.
"The board of First Capital is confident that there is a demonstrable superior difference between the benefits and value of this deal with Rockstead, than the proposed agreement previously announced to the market. The deal brings long term value to shareholders," First Capital acting managing director Tom Wallace said.
"Rockstead has provided immediate access to the funds, and the convertible notes zero coupon rate avoids the company being hamstrung by future onerous debt repayments."
Commenting on the new agreement, Rockstead chief executive Lester Tay said: "First Capital's commitment to growing the funds management and advisory business, together with future ongoing support from Rockstead will set First Capital on a sound and stable footing for future growth."
Rockstead is a boutique investment and advisory firm with offices in Asia, Europe and North America.
First Capital announced it had received an offer from a group of investors to recapitalise the company last month. In the same month First Capital recorded a net loss of nearly $13 million for the 2006/07 year.
