KUALA LUMPUR (Dec 7): Tadmax Resources Bhd plans a rights issue of 219.3 million shares, with 384 million free detachable warrants, to raise up to RM109.7 million to settle remaining acquisition and repay debts.

Tadmax said the issue would be on the basis of two new shares for every five shares held, together with seven warrants for every four rights shares subscribed at an entitlement date and issue price to be determined later.

In a filing with Bursa Malaysia today, Tadmax said the exercise follows its Nov 15 announcement on the proposal to undertake a private placement of up to 50 million new shares representing approximately 10% of its issued and paid-up capital.

It said if the private placement is completed prior to the rights issue, those who subscribed to the placement shares would be entitled to subscribe for rights shares with warrants.

Tadmax said to meet the minimum subscription level, its managing director Datuk Seri Anuar Adam and former deputy chairman Datuk Faizal Abdullah, both major shareholders of Tadmax, would subscribe to RM50 million worth of rights shares with warrants.

The group said the rights proceeds would be used to settle the remaining acquisition price of a 45% equity interest in Wawasan Metro Bina Sdn Bhd (RM32.5 million), bank borrowings (RM20 million), working capital or property development (RM16.6 million), future investments (RM40 million) and estimated expenses for the exercise (RM600,000).

Tadmax’s share price closed unchanged at 39.5 sen today for a market capitalisation of RM193.2 million.