rights issue

 
 

Perisai Petroleum lays out plan to cut debt and raise cash

PETALING JAYA: Practice Note 17 Perisai Petroleum Teknologi Bhd (PPTB) on Friday announced that its plans to cancel off accumulated losses, issue shares and irredeemable and redeemable unsecured loan stocks to settle debt and a rights issue to raise funds to focus its business on the oil drilling rig of the group and the FPSO (floating production storage and offloading) unit, namely Perisai Kamelia, as part of its business rationalisation exercise.

PPTB listed a capital reduction and share consolidation to eliminate its accumulated losses; issuance of shares, irredeemable and redeemable unsecured loan stocks to settle RM1.67 billion in debt; proposed bilateral settlements for another RM627.8 million of inter-company debt; proposed bilateral settlements for operating subsidiaries’ lenders of RM1.4 billion, liquidation of subsidiaries and a rights issue to raise up to RM22.34 million funds for part of its debt settlement and working capital of the regularised group.

The proposed capital reduction will work to offset its accumulated losses, which figures at RM962.83 million as at June 30, 2017.

Perisai said its rights issue will involve the issuance of 223.39 million rights shares at an issue price of 10 sen per rights share on the basis of one rights share for every 2.94 existing Perisai shares held on an entitlement date to be determined later.

In the event of under-subscription of the proposed rights issue, Perisai Petroleum will place out up to 85.88 million placement shares at an issue price of 10 sen per placement share to Sage 3 Capital Sdn Bhd and third party investors to be identified, which is expected to raise at least another RM8.59 million.

It involves a proposed bilateral settlement to settle the outstanding liabilities owed by Perisai to the inter-company creditors namely Perisai Capital (L) Ltd, Garuda Energy (L) Ltd and Intan Offshore (L) Ltd.

With the completion of the proposed bilateral settlements for Garuda Energy, Intan Offshore and Perisai Capital, all three companies are to be wound up. The winding-up of the subsidiaries is in line with the plans of PPTB Group to focus its business on PP101 Rig, being the oil drilling rig of the group and Perisai Kamelia.


Priceworth signs underwriting for rights issue in FMU5 acquisition plan

KOTA KINABALU, May 18 ― Integrated timber group Priceworth International Bhd has appointed Am Investment Bank Bhd, RHB Investment Bank Bhd, and Mercury Securities Sdn Bhd as joint managing underwriters for its RM102.37 million proposed rights…


Cypark proposes private placement to raise RM64m

PETALING JAYA: Cypark Resources Bhd has proposed to undertake a private placement, representing up to 10% of its issued shares to raise estimated gross proceeds of up to RM64.37 million.

The proceeds will be utilised for working capital requirements for the engineering, procurement, construction and commissioning (EPCC) of a large scale solar photovoltaic plant (LSSPV).

Cypark had accepted the conditional letter of award dated Jan 25, 2018 from Cove Suria Sdn Bhd in respect of the EPCC contract and operation and maintenance contract of the LSSPV of 30 Mega-Watt capacity at Empangan Kelinchi, Negeri Sembilan.

The board is of the view that the proposed private placement is the most appropriate avenue of fundraising, as it enables the group to raise funds expeditiously without relying entirely on equity funding from the existing shareholders of the company as compared to a proportionate issuance of new shares in a rights issue scenario, which would typically entail a longer implementation time.

It also allows the group to raise funds without incurring interest expenses as compared to bank borrowings, while the enlarged share base is expected to enhance the liquidity of the shares on the Main Market of Bursa Securities.

However, the exercise may dilute Cypark’s consolidated earnings per share as a result of the increase in the number of shares issued. Nonetheless, the proceeds from the exercise are expected to contribute positively to the future earnings of Cypark, as and when the benefits of the utilisation of proceeds are realised.

Barring any unforeseen circumstances and subject to all required approvals being obtained, the proposed private placement is expected to be completed by the fourth quarter of 2018.


Public Bank shareholdes pay homage to Teh

KUALA LUMPUR: In the first AGM after the announcement of Public Bank Bhd chairman Tan Sri Dr Teh Hong Piow’s retirement, shareholders took the opportunity to express their gratitude and commend him on his leadership of the group.

The AGM, which was the last AGM for Teh as non-executive chairman, saw a total of 6,030 shareholders in attendance today.

The subject of Teh’s retirement dominated the meeting, with shareholders asking about the group’s succession plan.

Shareholders took the opportunity today to thank him for his leadership and service, and wished him the best while others requested that he reconsider his decision to retire.

“I am 92 years old and you are only 88, you should stay on,” said one of the shareholders, who proceeded to sing a birthday song for Teh, who celebrated his birthday last month.

In July last year, the group announced Teh’s plans to relinquish his position as non-executive chairman of Public Bank on Jan 1, 2019, upon which he will be bestowed the title of chairman emeritus and appointed adviser.

As chairman emeritus and adviser, Teh will provide guidance to support the continued growth of Public Bank and the group.

Teh founded Public Bank on Dec 30, 1965 and has been with the group for 51 years. He retired as chairman of Public Islamic Bank Bhd and Public Investment Bank Bhd on Jan 1, 2018.

Managing director Tan Sri Tay Ah Lek, who thanked shareholders for the sentiments expressed, said Teh, who will continue to provide guidance, advice and mentorship to the group, has built a strong structure with a culture of prudence and discipline within the group over the years.

“These are the very important fundamentals that are already in place and will continue to drive the bank. The culture will stay. We can tell you that we have a very large number of long-serving staff with us. Some 45% of our staff are senior staff and also middle management staff, who have been with us for a long time.”

Tay said the chairmanship and directorship of the group are subject to the approval of the central bank. He said Teh’s successor will be announced at the appropriate time and assured shareholders that the board’s succession is always in place.

Teh was proud to note that if a shareholder of Public Bank had bought 1,000 shares in Public Bank when it was listed in 1967, and subscribed for all rights issues to date and had not sold any of the Public Bank shares, he would have 148,938 Public Bank shares worth RM3.5 million to date and received a total gross dividend of RM1.3 million.

This translates into a total value of RM4.8 million, representing a remarkable compounded annual rate of return of 19% for each of the 50 years since 1967.

“The group is confident that its strong fundamentals will enable it to stay resilient and flexible as well as seize opportunities when they arise.

“Against the backdrop of an increasingly more challenging and complex operating environment, the group’s key priorities are to accelerate business and digital innovation as well as pursue operational efficiency,” Teh said in a statement.

He said the group’s business model building on its organic growth strategy in the retail banking business, coupled with its prudent credit policies as well as strong risk management practices, will remain the group’s key strengths to sustain continued business and profitability growth.

On Bursa Malaysia today, Public Bank rose 0.41% or 10 sen to close at RM24.30 with 1.87 million shares traded.


Public Bank shareholders pay homage to Teh

KUALA LUMPUR: In the first AGM after the announcement of Public Bank Bhd chairman Tan Sri Dr Teh Hong Piow’s retirement, shareholders took the opportunity to express their gratitude and commend him on his leadership of the group.

The AGM, which was the last AGM for Teh as non-executive chairman, saw a total of 6,030 shareholders in attendance today.

The subject of Teh’s retirement dominated the meeting, with shareholders asking about the group’s succession plan.

Shareholders took the opportunity today to thank him for his leadership and service, and wished him the best while others requested that he reconsider his decision to retire.

“I am 92 years old and you are only 88, you should stay on,” said one of the shareholders, who proceeded to sing a birthday song for Teh, who celebrated his birthday last month.

In July last year, the group announced Teh’s plans to relinquish his position as non-executive chairman of Public Bank on Jan 1, 2019, upon which he will be bestowed the title of chairman emeritus and appointed adviser.

As chairman emeritus and adviser, Teh will provide guidance to support the continued growth of Public Bank and the group.

Teh founded Public Bank on Dec 30, 1965 and has been with the group for 51 years. He retired as chairman of Public Islamic Bank Bhd and Public Investment Bank Bhd on Jan 1, 2018.

Managing director Tan Sri Tay Ah Lek, who thanked shareholders for the sentiments expressed, said Teh, who will continue to provide guidance, advice and mentorship to the group, has built a strong structure with a culture of prudence and discipline within the group over the years.

“These are the very important fundamentals that are already in place and will continue to drive the bank. The culture will stay. We can tell you that we have a very large number of long-serving staff with us. Some 45% of our staff are senior staff and also middle management staff, who have been with us for a long time.”

Tay said the chairmanship and directorship of the group are subject to the approval of the central bank. He said Teh’s successor will be announced at the appropriate time and assured shareholders that the board’s succession is always in place.

Teh was proud to note that if a shareholder of Public Bank had bought 1,000 shares in Public Bank when it was listed in 1967, and subscribed for all rights issues to date and had not sold any of the Public Bank shares, he would have 148,938 Public Bank shares worth RM3.5 million to date and received a total gross dividend of RM1.3 million.

This translates into a total value of RM4.8 million, representing a remarkable compounded annual rate of return of 19% for each of the 50 years since 1967.

“The group is confident that its strong fundamentals will enable it to stay resilient and flexible as well as seize opportunities when they arise.

“Against the backdrop of an increasingly more challenging and complex operating environment, the group’s key priorities are to accelerate business and digital innovation as well as pursue operational efficiency,” Teh said in a statement.

He said the group’s business model building on its organic growth strategy in the retail banking business, coupled with its prudent credit policies as well as strong risk management practices, will remain the group’s key strengths to sustain continued business and profitability growth.

On Bursa Malaysia today, Public Bank rose 0.41% or 10 sen to close at RM24.30 with 1.87 million shares traded.


Sinotop shares flat on RM164m proposal for construction firm

PETALING JAYA: Sinotop Holdings Bhd share price opened flat despite a potential RM164 million bid to buy a 60% interest in construction company Asianmax Corp Sdn Bhd on Friday.

In the last one year the company has lost 43% of its share value. It closed unchanged in morning trade at 43 sen.

On Friday, Sinotop announced that its proposal for Asianmax was to strengthen its existing project management and infrastructure construction-related businesses.

The company told Bursa Malaysia it may consider a rights issue to fund the deal which would include the use of internally generated funds and/or bank borrowings.

The group which is involved in the production of customised woven loom-state fabrics from cotton, synthetic and mixed yarn, said it had entered into a term sheet with Datuk Justin Soo for the proposed acquisition, which would exclude one of Asianmax’s subsidiary, Johnson Fluid Engineering Sdn Bhd, as it is not involved in the business of construction. The term sheet is subject to a definitive share sale agreement between Sinotop and Soo.

Soo will provide a profit guarantee of an aggregate amount of not less than RM50 million for the financial year ending 2019, 2020 and 2021 collectively.

Subject to a definitive agreement, the purchase consideration will be satisfied either through wholly in cash, wholly by the issuance of new redeemable convertible preference shares (RCPS) in Sinotop based on terms to be mutually agreed upon by the company and the vendors at an issue price of 42 sen per RCPS or a combination of both.


Singapore’s Temasek hikes Bayer stake in US$3.7b share sale

temasek_20180417115503_reuters

FRANKFURT (April 17): German drugmaker Bayer is raising 3 billion euros (US$3.7 billion) towards its planned US$62.5 billion takeover of seed maker Monsanto by selling a 3.6% stake to Singapore’s state investment company Temasek. Bayer said it had struck a deal with Temasek under which it would issue shares with an entitlement to dividends as of January 1, 2017 at an at-market price. Together with its existing holding in Bayer, Temasek would own about 4% in Bayer after the transaction. “Temasek takes equity positions in leading companies globally and isRead More


Singapore’s Temasek hikes Bayer stake in US$3.7 share sale

FRANKFURT, April 17 — German drugmaker Bayer is raising €3 billion (RM14.3 billion) towards its planned US$62.5 billion (RM242.4 billion) takeover of seed maker Monsanto by selling a 3.6 per cent stake to Singapore’s state investment company…


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.


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.