Thursday 28 Mar 2024
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This article first appeared in The Edge Financial Daily on April 12, 2019

KUALA LUMPUR: Eastern & Oriental Bhd (E&O) said yesterday it plans to raise a minimum of RM123 million under a proposed rights issue to finance its Seri Tanjung Pinang Phase 2A (STP2A) project within Penang’s north-eastern enclave.

In a statement, E&O said STP2A, comprising residential and commercial properties to be developed over 15 years, is expected to have a gross development value of over RM17 billion.

“With STP2A’s progress on track, we are gearing ourselves for our next growth trajectory, for which we must have the foresight to lay down a sustainable funding strategy. As such, we have put in place a fundraising plan to bring the STP2 concept to reality,” said E&O managing director Kok Tuck Cheong.

E&O recently announced that Tan Sri Wan Azmi Wan Hamzah had taken up a 9.09% stake in the group via a private placement of new shares for RM127.6 million. It said the stake acquisition reinforces Wan Azmi’s confidence in E&O’s track record for STP1 and vision for STP2.

E&O’s Bursa Malaysia filing on March 19 showed that Wan Azmi took up the 9.09% E&O stake comprising 130.23 million shares via Sweetwater SPV Sdn Bhd.

Wan Azmi owns a 60% interest in The Sweet Water Alliance Sdn Bhd, which in turn owns 100% of Sweetwater SPV.

In the statement yesterday, E&O added that, “with the completion of the private placement exercise, the group will be focusing on the next phase of its fundraising exercise and is looking at raising a minimum of RM123 million under the proposed rights issue.”

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