Friday 29 Mar 2024
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KUALA LUMPUR (June 16): Electronic and electrical product maker Astral Supreme Bhd is seeking a new partner for its property venture, after the termination of its letter of expression of interest for a planned commercial development on a 6.7 acre plot in Nilai, Negri Sembilan, by the project's landowner, S Wira Development Sdn Bhd (SWD).

The evaluation and negotiations, which have begun with a new potential joint-venture partner, will consider the use of the RM80.9 million proceeds from its proposed rights issue with warrants, Astral Supreme told Bursa Malaysia in a filing today.

“Upon finalisation of the terms of the joint venture development, Astral Supreme shall make the necessary announcement in relation to the joint venture development and the proposed revision to the utilisation of proceeds from the proposed rights issue with warrants, which was affected by the termination,” it said.

On June 13, SWD had sent a letter to Astral Supreme’s wholly-owned subsidiary Astral Supreme Development Sdn Bhd (ASDSB) to terminate the latter's letter of expression of interest — issued on Dec 18, 2014 — for the proposed development.

ASDSB had expressed its intention to commence discussion and negotiation for participation in the proposed development via the letter in the project, which carries an estimated gross development value of RM89.58 million, with a gross development cost of RM52.13 million.

The termination was because SWM had proceeded to negotiate with another party and had recently reached an arrangement with the latter for the project, due to a delay in the completion of Astral Supreme's cash call, which was announced, among other proposals, on July 30, 2014.

The proposed rights issue with warrants — that was supposed to raise up to RM80.9 million — entails renounceable rights issue of two rights shares for every one share of 10 sen held by shareholders, after the completion of a proposed par value reduction, which comes with one warrant for every two rights shares subscribed by shareholders.

Astral Supreme said it is required to issue a circular to shareholders on the latest development within 14 days, after the receipt of Bursa Securities' confirmation that it has no further comments.

It has also sent in an application to Bursa Securities for more time — up to July 29, 2016 — to issue the circular.

Astral Supreme closed one sen or 6.9% lower at 13.5 sen today, valuing it at RM39.4 million.

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