Wednesday, February 10, 2010

Gadang proposes rights issue

KUALA LUMPUR: GADANG HOLDINGS BHD [] has proposed a rights issue, involving two rights shares for every three held and one warrant for every four rights shares held. It said on Wednesday, Feb 10 the corporate exercise would entail the issuance of up to 78.67 million rights shares on the basis of two rights shares for every three shares held with up to 19.67 million warrants.

Gadang said the actual number of rights shares and warrants to be issued would be decided at the entitlement date based on the issued and paid-up capital of RM118.01 million comprising of 118.01 million shares.

"The board intends to raise minimum proceeds of RM25 million from the proposed rights issue to meet the working capital requirements of the group," it said.
It added the indicative issue price of RM1 per rights share will be payable in two calls.

The indicative first call price of 65 sen per rights share will be payable in full on application in cash. The indicative second call of 35 sen per rights share will be capitalised from the company’s share premium and retained profits accounts.

"The subscribing shareholders of Gadang will not be required to make any further cash payment after the payment for the first call," it said.

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