Business

Thursday March 29, 2012

Land buy, bonus issue and placement by Nextnation


PETALING JAYA: Nextnation Communications Bhd plans to acquire a piece of 5.9 acres freehold vacant enterprise land in Cyberjaya and make a bonus issue of 45.74 million free warrants and a private placement of up to 30% of its issued and paid-up capital.

Shares of ACE Market-listed Nextnation were suspended from 2.30pm to 5.00pm yesterday, pending this announcement. Its last traded price was 10.5 sen.

Nextnation told Bursa Malaysia that the land would cost RM18.52mil, to be fully settled by cash.

The land is to cater for the development of office space and facilities such as data centre, research and development labs and an incubation campus for in-house usage and will be partly sold and/or tenanted out to third parties. The gross development value will be RM400mil to RM500mil.

The proposed bonus issue are on the basis of one bonus warrant for every 10 existing shares held in Nextnation on an entitlement date to be determined later.

The proposed private placement together with free detachable warrants in Nextnation are on the basis of three placement warrants for every two new Nextnation shares subscribed.

The proposed private placement with warrants may raise gross proceeds of up to RM15.49mil, assuming up to 137.21 million placement shares are placed out at an indicative price of 11.3 sen per share, which represents the five-day weighted average market traded price of Nextnation shares.

Of the gross proceeds, some RM4mil will be used for the proposed acquisition, RM10mil to part finance its capital expenditure and RM1.19mil for working capital, while the remainder are for expenses related to the proposals.

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