rights issue


Oil majors lift FTSE 100, Peltz stake thrusts Ferguson higher

LONDON, June 13 — London’s FTSE 100 gained today as Ferguson surged to an eight-month high after activist investor Nelson Peltz bought into the plumbing products distributor, while oil majors rose as crude prices shot up after reports of a…

XOX to raise up to RM66.28m to fund expansion plans

PETALING JAYA: XOX Bhd is looking to raise up to RM66.28 million from a proposed renounceable rights issue of irredeemable convertible preference shares (ICPS) with free detachable warrants (Warrants B).

In a filing with Bursa Malaysia, the company said it plans to undertake a rights issue of up to 2.65 billion new ICPS together with up to 662.81 million Warrants B on the basis of four ICPS with one free Warrant B for every two existing ordinary shares in XOX.

XOX intends to raise up to RM66.28 million from the proposed rights issue of ICPS with warrants which entails a minimum subscription level of 400 million ICPS together with 100 million Warrants B, based on illustrative issue price of 2.5 sen per ICPS and illustrative exercise price of 6 sen per warrant.

The minimum subscription level will be met via a written undertaking from Key Alliance Group Bhd, a substantial shareholder of the company, to apply and subscribe in full for its entitlement under the proposed rights issue of ICPS with warrants.

Under minimum scenario, the RM10 million gross proceeds raised will be used to fund its eSIM expansion plan and estimated expenses for the proposals. The eSIM expansion plan includes upgrading of hardware, software costs and marketing expenses.

Under the maximum scenario, the RM66.28 million gross proceeds raised will be used to fund the eSIM expansion plan, expansion of XOX’s e-wallet function, working capital and estimated expenses for the proposals.

XOX’s working capital includes maintenance cost of mobile and digital network infrastructure as well as operating and administrative expenses such as staff cost, utilities, rental, transportation and upkeep of office.

The ICPS will have a tenure of 10 years commencing from and inclusive of the issue date of the ICPS while the tenure of the Warrants B is three years from the date of issuance.

Fox host, Chinese state TV anchor face off over trade war

BEIJING, May 30 — A Chinese state TV anchor and a host from Fox Business, whose sparring over the US-China trade war has been avidly followed on Chinese social media, brought their duel to the American cable network for what turned out to be a…

US-China trade war of words heads for Fox cable TV face-off

BEIJING, May 29 — China’s propaganda war with the United States over their escalating trade dispute will reach a crescendo of sorts when a broadcaster from Chinese state television debates a Fox Business host in prime time on the US cable…

Scomi to issue 206 million shares of Scomi Energy to Maybank

PETALING JAYA: Scomi Group Bhd has pledged 206.04 million shares in Scomi Energy Services Bhd shares as part of its settlement with Malayan Banking Bhd (Maybank).

The group said in a stock exchange filing today that the two parties have agreed to a settlement of Maybank’s demand for RM113.96 million.

On Monday, the group announced the proposed liabilities settlement, along with a share capital reduction, share consolidation and rights issue of shares with warrants to raise up to RM214 million.

The default arose due to failure by Scomi’s indirect wholly owned subsidiary Scomi Rail Bhd (SRB) to pay the amount due to Maybank for banking facilities granted to SRB.

Scomi had on May 27, agreed with Maybank, a settlement sum of RM38 million to be paid to Maybank in satisfaction of all Scomi’s liabilities and obligations, comprising RM23 million cash settlement to be settled via the proceeds from the proposed rights issue of shares with warrants and RM15 million via the issuance of new consolidated shares.

Scomi’s share price tumbled 26.67% to 5.5 sen on 29.55 million shares traded today, making it one of the top actively traded stocks on the bourse.

Never mind the profit fall, M&S says, focus on the changes

LONDON, May 22 — Marks & Spencer asked to be judged on how fast it is changing as much as its financial results today, as the British clothing and food retailer reported a third straight drop in annual profits. The 135-year-old mainstay of…

M&S logs mixed annual profits amid overhaul

LONDON, May 22 — British clothing-to-food retailer Marks & Spencer posted mixed annual profits and sagging sales today, weighed down by challenging market conditions and an ongoing overhaul. Bottom-line profit after taxation jumped by almost a…

Jaks proposes another fundraising exercise

PETALING JAYA: Jaks Resources Bhd has proposed another round of fund raising exercise to raise maximum gross proceeds of RM54.97 million through a private placement as it did not able to raise sufficient funding for its power plant project.

Earlier the company had in December 2018 raised RM25.61 million from its rights issue of warrants.

However, as the warrants were undersubscribed by 62.48%, the proceeds raised were prioritised towards the repayment of bank borrowings, Vietnam power plant project, and to defray the relevant expenses relating to the exercise.

“The proposed private placement will enable Jaks to raise proceeds to bridge the gap for existing expenditure required for the Vietnam power plant project (such as the construction and engineering works for the jetty and administration building, and fabrication of additional equipment by contractors, as well as consultancy costs for project coordination management and advisory services) which were unable to be funded from the rights issue of warrants,“ it said in a filing with Bursa Malaysia.

Besides that, the proceeds will also be utilised for the repayment of bank borrowings and renewable energy projects.

The indicative issue price for the placement shares is assumed to be 80 sen and the placement shares will be placed out to third party investor(s) to be identified at a later date.

Jaks said there will be a corresponding dilution in the earnings per share of the group as a result of the increase in the number of shares issued.

The exercise is expected to be completed by the second quarter of 2019.

EU hails breakthrough with China on industry subsidies

BRUSSELS, April 10 — Chinese Premier Li Keqiang promised the European Union yesterday that Beijing would no longer force foreign companies to share sensitive know-how when operating in China and was ready to discuss new global trading rules on…