AmProp proposes rights issue to raise up to RM597 million

PETALING JAYA: Amcorp Properties Bhd (AmProp) proposes a renounceable of new class B redeemable convertible preference shares (RCPS B) to raise gross proceeds of up to RM597.2 million.

The company is undertaking the proposed rights issue to raise funds for the group to finance the existing and future property development projects and investments, including those undertaken through its joint ventures, to partly repay bank borrowings and for working capital requirements.

Amcorp said the exercise will further strengthen the company’s capital base and improve its gearing level; minimise the immediate dilutive effect on the basic earnings per share of the group, as the RCPS B is only expected to be converted over a period of time after the first anniversary of the issue date of the RCPS B.

It also provides the entitled shareholders with an opportunity to further increase their equity participation in the company via the option to convert the RCPS B held by them into new AmProp shares at a predetermined ratio.

Amcorp also noted that the issuance of RCPS B would also enable the company to achieve the minimum subscription Level via its major shareholder’s undertaking without resulting in a breach of the minimum public shareholding spread requirement under the Main Market Listing Requirements of Bursa Securities.

The proposal is expected to be completed by the first quarter of 2018.

AmProp closed 0.63% higher at 79.5 sen on Thursday with 24,900 shares traded.

Source: The Sun Daily

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