In a filing with Bursa Malaysia yesterday, UEM Land said the issue price for the rights shares was expected to be fixed at a discount of at least 30% to the theoretical ex-rights price of its shares immediately before the price fixing date which would be determined and announced in due course.
UEM Land intends to utilise RM633mil from the gross proceeds to repay a term loan owed by wholly-owned unit Bandar Nusajaya Development Sdn Bhd and RM266.2mil for property development.
Wan Abdullah Wan Ibrahim says the rights issue will allow the company to repay its borrowings
Managing director and chief executive officer Wan Abdullah Wan Ibrahim said the proposed rights issue would allow the company to raise funds to repay its borrowings and reduce its interest cost which would lead to a more robust capital structure.
“The inflow of capital for our property development activities will accelerate the realisation of value from our Nusajaya land bank and spur UEM Land’s future earnings growth,” he said, adding that the company had a number of property projects in the pipeline.
“We are also optimistic that for 2010, the overall property market in Malaysia will outperform 2009 – particularly for Johor where we expect a lot of excitement arising from the successful implementation of Iskandar Malaysia’s initiatives and the spillover demand from Singapore with the recovery of Singapore’s property market and the opening of the Marina Bay Sands and Resorts World Sentosa,” Wan Abdullah said.
Subject to all approvals being obtained, the proposed rights issue is expected to be completed by April 30.
In line with its confidence in and continuing support of UEM Land, UEM Group Bhd (a major shareholder of UEM Land) has provided its irrevocable written undertaking to subscribe in full or procure the subscription in full of its entitlement under the proposed rights issue
As at Dec 31, UEM Group held directly 1.87 billion UEM Land shares, representing 77.14% equity interest. Pursuant to the UEM Group undertaking, UEM Group’s minimum subscription amount will be about RM748.2mil.
By The Star
Managing director and chief executive officer Wan Abdullah Wan Ibrahim said the proposed rights issue would allow the company to raise funds to repay its borrowings and reduce its interest cost which would lead to a more robust capital structure.
“The inflow of capital for our property development activities will accelerate the realisation of value from our Nusajaya land bank and spur UEM Land’s future earnings growth,” he said, adding that the company had a number of property projects in the pipeline.
“We are also optimistic that for 2010, the overall property market in Malaysia will outperform 2009 – particularly for Johor where we expect a lot of excitement arising from the successful implementation of Iskandar Malaysia’s initiatives and the spillover demand from Singapore with the recovery of Singapore’s property market and the opening of the Marina Bay Sands and Resorts World Sentosa,” Wan Abdullah said.
Subject to all approvals being obtained, the proposed rights issue is expected to be completed by April 30.
In line with its confidence in and continuing support of UEM Land, UEM Group Bhd (a major shareholder of UEM Land) has provided its irrevocable written undertaking to subscribe in full or procure the subscription in full of its entitlement under the proposed rights issue
As at Dec 31, UEM Group held directly 1.87 billion UEM Land shares, representing 77.14% equity interest. Pursuant to the UEM Group undertaking, UEM Group’s minimum subscription amount will be about RM748.2mil.
By The Star
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