Friday 29 Mar 2024
By
main news image

KUALA LUMPUR (Oct 23): BTM Resources Bhd said today it is contemplating a fund-raising exercise, confirming a report by The Edge Malaysia weekly.

“The board of directors of BTM wish to clarify that the company is in the midst of deliberating to undertake a fund-raising exercise. The company will make the necessary announcements once it has been finalised,” the timber group said in a filing.

The Edge Malaysia’s latest edition said in an article entitled “HK PE firm to emerge as BTM Resources' substantial shareholder”, that BTM Resources will undergo several exercises, including a private placement in anticipation of a new substantial shareholder in the company.

Quoting sources, the report said a Hong Kong-based private equity firm has acquired at least a 3.1% stake in BTM Resources, and will increase its shareholding to around 25 million shares — or 17.7% of its share capital post-private placement — having gained interests in the company’s power generation project, first announced in April.

At the time, BTM Resources signed a Memorandum of Understanding with two Chinese companies — China Western Power International Pte Ltd and Sichuan No 2 Electrical Power Construction Company — to establish a RM435 million municipal solid waste-to-energy generation plant in Melaka.

Other methods that may be used by the private equity firm includes a warrant conversion, according to the report. The company has two warrants — warrant A maturing Dec 20, 2019 with an exercise price of 94 sen, and warrant B maturing Oct 23, 2024 with an exercise price of 20 sen.

“Some of these 25 million shares will be coming from the exercise of warrants. In fact, 1.1 million shares have been issued and listed on Oct 19 under warrant conversion. They are trying to round up all the warrants B from the market,” the weekly quoted a source as saying.

As at March 31, there were 29.48 million warrants B yet to be converted, according to the company’s 2016 annual report.

Shares of BTM Resources closed 3.5 sen or 13.21% higher at 30 sen today with 2.9 million shares traded, giving the group a market capitalisation of RM39.08 million. Its warrants A rose 2 sen or 33.33% to 8 sen apiece, while warrants B were not traded.

      Print
      Text Size
      Share