Hap Seng on RM1.5bil fund-raising drive
Filed Under (Business News) by Webmaster on 11-01-2011
Tagged Under : Hap Seng Consolidated
Hap Seng Consolidated Bhd, which expects to raise RM1.5bil through placements and rights issues, intends to utilise the proceeds for growth initiatives in property investment and development, auto dealerships and building materials.
Additional proceeds from the exercise of the warrants would be utilised for working capital purposes, managing director Datuk Edward Lee Ming Foo said.
“Malaysia’s economy is poised for significant growth over the coming years. With our key businesses in property investment and development, auto dealerships, fertilisers, plantations and building materials, we believe we are well positioned to execute our expansion plans and benefit from that growth,” he said in a statement on Bursa Malaysia yesterday.
Datuk Edward Lee Ming Foo says Hap Seng is well positioned to execute its expansion plans
Additionally, Hap Seng said it had set its dividend policy to pay out up to 50% of profits after tax going forward.
Chairman Datuk Jorgen Bornhoft said in the same statement that it was part of the company’s move to reward its shareholders for their continued support.
“These proposals are intended to both reward them for their loyalty and set the stage for Hap Seng to achieve its growth ambitions.”
Last week, the company announced that it was proposing a rights issue of up to 448.31 million shares together with up to 448.31 million new free detachable warrants on the basis of one rights share together with one warrant for every five Hap Seng shares held.
The bonus issue being proposed will involve up to 1.49 billion new shares to be credited as fully paid-up on the basis of two bonus shares for every one existing Hap Seng share on an entitlement date to be determined and announced later.
The company’s proposed private placement will involve up to 124.53 million new ordinary shares of RM1 each representing up to 20% of the issued and paid-up share capital of the company.
The proposed increase in the authorised share capital will boost the share capital to RM5bil from the present RM1bil.
The proposals are subject to shareholder approval and applicable regulatory approvals, with further details to be made available in the company’s circular to shareholders, which it intends to dispatch by end February following customary regulatory reviews and approvals.
