E&O rights issue oversubscribed, raises RM236mil

KUALA LUMPUR: Eastern & Oriental Bhd’s (E&O) rights issue of irredeemable convertible secured loan stocks (ICSLS) has achieved an oversubscription rate of 2.9 times above the minimum subscription level.

The company said in a statement that RM236mil was raised from the exercise.

The ICSLS is expected to be listed on Bursa Malaysia on Nov 20.

“The exceptional response to our rights issue reflects shareholders’ strong confidence in E&O and our plans going forward,” said executive director Eric Chan Kok Leong.

The funds raised will be used as working capital for ongoing and future development projects.

It will also be used for possible strategic mergers and acquisitions; and/or for repayment of bank borrowings.

E&O : [Stock Watch] [News]

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