Encorp proposed rights issue of RM112 million
Filed Under (Business News) by Webmaster on 15-03-2010
Tagged Under : Encorp, rights issue
Encorp Bhd announced today a proposed renounceable rights issue of up to RM111.75 million nominal value of five-year six per cent redeemable convertible secured loan stocks (RCSLS) at 100 per cent of its nominal value together with up to 55.87 million free detachable warrants.
This is on the basis of two RM1 nominal value of RCSLS together with one warrant for every four existing shares of RM1 each in Encorp, the company said in a filing to Bursa Malaysia.
Encorp also announced a proposed placement of up to RM22.35 million nominal value of RCSLS at 100 per cent its nominal value together with up to 11.175 million free detachable warrants to identified investors.
It said proceeds amounting RM134.105 million arising from the rights issue would be used for capital, project development and construction expenditures, finance working capital requirements and expenses related to the proposals.
Buoyed by the stronger signs of economic improvement as shown in the last quarter of 2009, Encorp is looking at opportunities to grow and enhance its earnings.
The business strategy for its property division is to replenish and expand its landbanks in strategic locations and for the construction division is to increase its order books.
Currently, the property division is in the midst of negotiating with various parties to increase the development of landbanks while the construction division has submitted a few proposals to certain parties to bid for construction jobs.
Encorp also said that the proposed rights issue and placement were expected to be completed by third quarter of the financial year ending Dec 31, 2010, and not expected to have any material effect on the company’s earnings for the financial year.
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