Published: Tuesday February 5, 2013 MYT 2:01:00 PM
Mah Sing Group gets shareholders' nod for RM400m fund raising
KUALA LUMPUR: Mah Sing Group Bhd has received its shareholders' approval for its fund-raising exercise to raise up to RM400mil.
The property company said on Tuesday the shareholders had voted to approve the corporate exercise at its EGM.
The exercise included a renounceable rights issue with free warrants, followed by a one-for-five share bonus issue for shareholders.
"The fund raising exercise is expected to raise up to RM400 million which will part finance their property development expenditure, future land acquisitions and general working capital requirement," Mah Sing said.
Mah Sing's group managing director cum group chief executive Tan Sri Leong Hoy Kum described the exercise as part of "our prudent management of capital structure to maintain a healthy and optimum capital base".
He said the exercise would improve the liquidity and marketability of Mah Sing Group's shares while it rewarded shareholders who could then buy new shares at a discount of at least 25% to the prevailing market prices, as well as enjoy bonus shares. The entitlement date for the rights issue with free warrants is expected to take place by end February 2013, with the closing date for acceptance of rights and excess application by mid March. The new Rights shares and Warrants are expected to be listed by end March 2013.
Mayang Teratai, a major shareholder of Mah Sing is providing an undertaking to take up to 50% of the rights issue.