bonus issue

 
 

Country Heights to raise RM1b to finance four projects

PETALING JAYA: Country Heights Holdings Bhd (CHHB) plans to raise RM1 billion either through direct borrowings, bond issuance or strategic partnerships to finance four project launches.

The property developer said in a statement that it has a very low financial gearing in comparison with its assets, with current loans standing at RM200 million against RM778 million in net tangible assets.

“Based on revalued net asset value together with a revaluation of our assets, the company would be worth over RM2.8 billion.”

In a filing with the stock exchange today, CHHB announced its plan to undertake a bonus issue of warrants involving an issuance of up to 137.85 million warrants on the basis of one warrant for every two existing CHHB shares held.

It noted that the exact quantum of the proceeds that may be raised will depend on the exercise price of the warrants and the actual number of warrants exercised during its five-year tenure. The proceeds will be used for working capital.

The bonus issue of warrants will provide the shareholders with the opportunity to increase their participation and to benefit from any potential capital appreciation of the warrants.

Barring any unforeseen circumstances, it is expected to be completed by the fourth quarter this year.

Speaking on the change in government, CHHB opined that the new government should aim to protect and propel new businesses in the next five years.

“New ideas from private sector should be protected but not hijacked. Similarly, the government should liberalise and not be overprotective of the banking and financial industries. Banks and financial companies should ideally operate as business entities with rules and regulations, thriving on their own merits. New banking licences should be considered,” it said.

CHHB held its AGM today. Its executive chairman, Tan Sri Lee Kim Yew, was in the news last year after the Inland Revenue Board seized his personal accounts in relation to RM22.7 million of tax liabilities incurred by CHHB's wholly owned subsidiary Country Heights Sdn Bhd for the 1997 and 1998 assessment years. Lee later settled the tax liabilities with his personal funds.

CHHB gained 14 sen or 11% to RM1.41 on volume of 114,500 shares today.


Country Heights plans 1-for-2 bonus issue of warrants

PETALING JAYA: Country Heights Holdings Bhd (CHHB) proposes to undertake a bonus issue of warrants.

The group said in a filing with the stock exchange that the bonus issue involves an issuance of up to 137.85 million warrants on the basis of one warrant for every two existing CHHB shares held.

CHHB noted that the exact quantum of the proceeds that may be raised will depend on the exercise price of the warrants and the actual number of warrants exercised during its five-year tenure. The proceeds will be used for working capital.

The bonus issue of warrants will provide the shareholders with the opportunity to increase their participation and to benefit from any potential capital appreciation of the warrants.

Barring any unforeseen circumstances, it is expected to be completed by the fourth quarter this year.
 


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5

How much are you willing to pay for your favourite bakery that consistently earns RM1 million a year? This is a question that Lim Tze Cheng, CEO of Inter-Pacific Asset Management Sdn Bhd, often asks when recruiting investment analysts. The answers can vary widely. He once put this question to an analyst friend and she said she would pay RM2 million for the bakery. Then he asked what her favourite stock was. “She named this company that I knew the numbers of. It was trading at a price-earnings ratio (PER)Read More


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top-glove-2_20180420140135_theedgemarkets

KUALA LUMPUR (April 20): Top Glove Corp Bhd proposed a bonus issue involving up to 1.28 billon new shares to reward shareholders. The group also plans to issue up to US$300 million worth of bonds, which will raise funds mainly to repay Top Glove’s bank borrowings. In a statement to Bursa Malaysia today, Top Glove said it plans to implement the bonus issue on the basis of one bonus share for one existing Top Glove share. The company said the bonds may be exchanged “at the option of the holdersRead More


Rex Industry rise 2.04% after it drops plans for rights, bonus issues

PETALING JAYA: Rex Industry Bhd's share price up one sen or 2.04% this morning, after it called off its plans for a two-for-nine rights issue together with a three-for-four bonus issue after taking into consideration the current market condition.

At 11.31am, the stock stood at 50 sen with 130,000 shares changing hands. The canned food and drink manufacturer has a market capitalisation of RM123.3 million.

The rights issue was to raise RM20.83 million for future viable investments, repayment of loans and working capital.

Given the current weak equity market condition, the company said it intends to explore alternative funding options to meet its funding requirements.


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Rex Industry drops plans for rights, bonus issues

PETALING JAYA: Canned food and drink manufacturer Rex Industry Bhd has called off its plans for a two-for-nine rights issue together with a three-for-four bonus issue after taking into consideration the current market condition.

The rights issue was to raise RM20.83 million for future viable investments, repayment of loans and working capital.

“Given the current weak equity market condition, the company intends to explore alternative funding options to meet its funding requirements,” it said in a filing with the stock exchange.

For instance, Rex said it may consider utilising its internally generated funds and/ or external borrowings to fund its working capital or embark on its viable business/ investment plans in a few phases, so that it can spread out its investment outlay on a staggered basis over a period of time.

Its net cash generated from operating activities was at about RM3.89 million as at June 30, 2017, with cash and cash equivalent and bank borrowings standing at about RM16.70 million and RM21.89 million, respectively.

Based on Rex’s net assets of about RM142.47 million, its gross gearing ratio is recorded at 0.15 times while net gearing ratio at 0.04 times.