KUALA LUMPUR (June 22): Malaysian Resources Corp Bhd (MRCB) said its major shareholders EPF and Gapurna Sdn Bhd will avoid triggering any mandatory general offer, while it applies for any excess rights shares and warrants under the group's cash call exercise.

However, neither EPF, which stands for the Employees Provident Fund, nor Gapurna will seek an exemption from undertaking a mandatory general offer (MGO) that could be triggered under the exercise.

This is to enable MRCB to complete its proposed renounceable rights issue expeditiously, MRCB said in a Bursa Malaysia filing today. 

"EPF and GSB will continue to subscribe in full for their entitlements under the Proposed Rights Issue, pursuant to their respective Undertakings. For the avoidance of doubt, it remains their intention to apply for excess rights shares with rights warrants, provided such application will not result in them triggering a mandatory general offer for the remaining MRCB shares and convertible securities not already owned by them," MRCB said.

The one-for-one renounceable rights issue, proposed in May, comes with free warrants, on the basis of one warrant for every five rights shares, to raise up to RM2.9 billion.

A sizeable portion of the proceeds to be raised will go towards funding the refurbishment and upgrading of the Bukit Jalil National Sports Complex, as well as to repay bank borrowings.

MRCB shares closed up 1 sen or 0.75% at RM1.34 today, giving it a market capitalisation of RM2.94 billion.