It said RM380 million would be for future business investments and expansion of its core activities.
This would include buying prime land for development, investment opportunities in strategic property development, expansion in environmental engineering and infrastructure business opportunities.
MRCB told Bursa Malaysia that it expects the corporate exercise to be completed in the first quarter of next year.
It will offer as much as 483 million new shares at an issue price of RM1.172 each. MRCB closed 1.4 per cent down to RM1.39 yesterday.
The basis for the proposed rights issue is one rights share for every two existing MRCB shares.
The Employees Provident Fund, which holds 30.6 per cent of MRCB, has promised to take up its portion and it could also buy other rights shares not bought by other shareholders.
It may even make a mandatory general offer for the rest of MRCB if it breaches the 33 per cent level, MRCB said.
MRCB said it will use RM85 million as equity investment in its 51 per cent owned Nu Sentral Sdn Bhd (NSSB), a joint-venture company between MRCB and Pelaburan Hartanah Bhd.
NSSB was formed to buy and manage Nu Sentral, a seven-storey retail mall within the Kuala Lumpur Sentral development now under development and covering a gross floor area of about 1.2 million square feet. It is due to be completed by 2012.
The RM800 million retail mall will be funded by equity investments and bank borrowings.
So far, MRCB has invested about RM38 million in Nu Sentral.
The remaining funds of the rights issue would be used for working capital and expenses for doing the rights issue.
By Business Times
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