Dijaya aims to raise up to RM171m from rights issue

DIJAYA Corp Bhd, as part of its capital management plan, aims to raise between RM100 million and RM171.3 million from a proposed rights issue with warrants to be used mainly as working capital for the group and its subsidiary.


CORPORATE OFFICE: The Dijaya group is involved in a spectrum of businesses that include resort and property development, manufacturing, investment holding and management services. - Website picture

The proposed rights issue of up to 214.12 million rights shares, together with up to 142.7 million free warrants, is to be implemented on a renounceable basis of four for three rights shares with two free warrants at an issue price of RM1 each.

The company expects to fully utilise the proceeds within two years after the completion of the proposed exercise.

In conjunction with the proposed cash-raising initiative, the group also proposed to double its present authorised share capital to RM1 billion comprising one billion shares by creating an additional 500 million new shares.

It also proposed to seek an exemption from the Securities Commission (SC) from having to make a mandatory offer, as provided for under Practice Note 2.9.1 of the Code, as well as amend to its Memorandum and Articles of Association in order to facilitate the proposed increase in authorised share capital.

The proposed rights issue with warrants is expected to contribute positively to the earnings of the Dijaya group for the financial year ending December 31 2008 and in the future, the company said in a statement.

Dijaya was listed on the main board of Bursa Malaysia since 1992 and is involved in a spectrum of businesses that include resort and property development, manufacturing, investment holding and management services. One of its well-known projects is Tropicana Golf & Country Resort.

By New Straits Times