Damansara Realty to pare down losses

DAMANSARA Realty Bhd (DBHD) has proposed to use RM656.6 million arising from its proposed capital reduction exercise to reduce the accumulated losses of the company and put it on a firmer footing.

In a filing to Bursa Malaysia yesterday, DBHD said the exercise entailed the cancellation of 84 sen of the par value of each of the existing 781,689,857 ordinary shares of RM1 each.

“Upon completion of the exercise, the issued and paid-up capital of the company will be reduced to RM125,070,377 comprising 781,689,857 ordinary shares of 16 sen each,” it said.

DBHD also proposed one-for-two rights issue of up to 125,070,377 shares.

It said based on the issued price of 50 sen per rights issue, the gross proceeds to be raised under the minimum subscription level and maximum subscription level would amount to RM30 million and RM62.5 million, espectively.

“The proceeds will be used for the working capital requirement and to defray expenses relating to the proposed restructuring scheme of about RM2.5 million,” it said.

The company also has proposed to acquire some assets from Johor Corp Group of Companies to improve revenue generation capabilities of the DBHD.

Among others, it has proposed to acquire a leasehold industrial land for RM178 million, 100 per cent equity interest in TPM Technopark Sdn Bhd for RM41.3 million and 53.2 per cent equity interest in TMR Urusharta (M) Sdn Bhd.

It has also proposed to dispose of 99.99 per cent equity interest in Tanjung Tuan Hotel Sdn Bhd for RM37.6 million.

By Bernama