Thursday 28 Mar 2024
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KUALA LUMPUR (April 28): Bintai Kinden Corp Bhd has increased the size of its private placement to partly pay for its acquisition of medical engineering solutions provider Johnson Medical International Sdn Bhd (JMI).

The placement will now comprise 190.95 million shares or 50% of the  group's share capital, and seeks to raise RM72.56 million based on an indicative price of 38 sen per share, the group said in a bourse filing.

Of the amount, RM26 million will be used to partly pay for the JMI purchase. Another RM25 million will be used for its Holistica Development project in Penang, while RM10.06 million will be set aside for working capital requirements.

On Jan 21, the group announced that it would be placing out 114.57 million shares or 30% of its share capital. At that point, the group was planning to raise RM58.43 million, which would have been mainly channelled into its Holistica Development projects in both Penang and Melaka. Both projects comprise a property development with healthcare facilities and wellness services.

Two weeks ago, Bintai Kinden signed a memorandum of understanding to acquire JMI for RM50 million from Yeo Eng Lam, of which RM26 million will be paid in cash and the balance RM24 million via the issuance of 58.54 million new shares at 41 sen a share.

Today, the two sides followed up with a share sale agreement.

Bintai Kinden said the deal allows the group to gain an immediate access into an ongoing business with unbilled order books of RM32.0 million, comprising supply and installation of medical related equipment and construction of medical related facilities (such as operating theatres, ventilation systems, medical supply facilities and gas supply equipment) in Malaysia.

"Accordingly, the proposed acquisition is expected to be earnings accretive to the enlarged Bintai Group, when JMI materialises the profits therefrom,” the group added.

Bintai Kinden has also proposed to issue 200 million redeemable convertible preference shares (RCPS) to boutique fund management company OUD Asset Management Sdn Bhd at 10 sen apiece. The indicative conversion price for the RCPS is 40 sen apiece.

It will use proceeds from the RCPS for working capital requirements, repay bank borrowings or as reserve funds for future business expansion.

The group’s share capital could increase to 831.37 million shares, from 31.89 million shares if the RCPS shares are converted, as well as the consideration shares and placement shares are placed.

M&A Securities Sdn Bhd is the principal adviser for the proposals, which are expected to be completed by the second half of the year.

Shares in Bintai Kinden closed one sen or 2.04% lower at 48 sen today, valuing the group at RM183.31 million. The counter saw 42.18 million shares traded.

Edited ByS Kanagaraju
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