rights issue


Lack of G7, IMF support seen dimming impact of US move on China’s yuan

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I-Bhd to raise up to RM150m via rights issue of RCCPS

PETALING JAYA: I-Bhd proposes a renounceable rights issue of three-year redeemable convertible cumulative preference shares (RCCPS) to raise up to about RM150 million.

The property developer is also extending the maturity date of its redeemable convertible unsecured loan stocks (RCULS) of about RM201 million maturing on August 27, 2019 by three years.

“Having considered the group’s cash position and its funding requirements going forward, the group believes it would be in its best interest to reserve cash for its business growth and defer the redemption of the RM201 million RCULS through the proposed RCULS extension,” I-Bhd told the stock exchange.

On the RCCPS, the group said it will be priced at a discount of at least 20% of the theoretical ex-rights price of its ordinary shares.

Proceeds from the RCCPS will be used for property investment/hospitality projects (RM85.3 million) and property development (RM64 million).

I-Bhd had earlier announced its plans to build up its investment properties and hospitality portfolio to about RM1 billion so as to provide a strong recurring income stream.

As at the end of 2018, the group has an investment property and hospitality portfolio worth about RM640 million.

“It is envisaged that over the next five years, this portfolio will increase by up to RM 300 million from the development and completion of the Double Tree by Hilton hotel, the associated convention centre, the Grade A, GBI-rated corporate office tower and an additional 3,000 car park bays.”

I-Bhd said the rights issue will provide shareholders further avenues to participate in the prospects and future growth of the group while also receiving fixed dividends on the RCCPS.

“The rights issue also strengthens the company’s balance sheet, thereby providing greater financial flexibility.”

At the midday break, I-Bhd’s share price was unchanged at 38.5 sen on 37,100 shares done.

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…