COVID-19: Pegasus halts F&B expansion, commercial space revamp

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KUALA LUMPUR (May 8): Loss-making Pegasus Heights Bhd, which is involved in leasing out commercial properties, has postponed its plans to expand its new F&B business and revamp its Seremban shopping mall in light of the COVID-19 pandemic.

The group said it has part-varied RM13 million from its 2019 rights issue proceeds, which was originally meant for the F&B expansion and the revamp of its Centerpoint Seremban shopping mall.

“In light of the current weak market conditions due to the recent COVID-19 outbreak, the group is not expected to expand the new F&B service business.

“At the same time, it is expected to reduce the costs for promotion, upgrade and maintenance of Centerpoint Seremban in the near future,” Pegasus Heights said in a filing today.

“Nevertheless, the board shall continue to be vigilant and prudent in managing the utilisation of proceeds,” it added.

The RM13 million will be varied for working capital (RM10.5 million) and repayment of borrowings  (RM2.5 million) — the latter of which is in expectation of future interest savings.

As at end-2019, Pegasus Heights’ total borrowings amounted to RM1.27 million.

With the variation, the group will still have RM1.3 million allocated for the F&B business, and another RM2.03 million for the promotion, upgrade and maintenance of Centerpoint Seremban.

The group had raised RM53.97 million — more than its latest market capitalisation — via a rights issue that was completed in June last year.

The counter settled unchanged at half a sen today, valuing the group at RM50.01 million.