Friday 29 Mar 2024
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KUALA LUMPUR (April 11): Eastern & Oriental Bhd (E&O) said today 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 northeastern enclave.

According to E&O's statement today, STP2A, which will comprise residential and commercial properties, is expected to have a gross development value of over RM17 billion. The company said STP2A will be developed over 15 years.

E&O managing director Kok Tuck Cheong said in the statement: “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."

According to E&O's statement, the group had recently announced that Tan Sri Wan Azmi Wan Hamzah had taken up a 9.09% stake in the company via a private placement of new shares for RM127.6 million. E&O 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 owns 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 holds 100% interest in Sweetwater SPV, according to the filing.

Today, E&O said in its statement that "with the completion of the private placement exercise, the group will be focusing on the next phase of its fund-raising exercise and is looking at raising a minimum of RM123 million under the proposed rights issue."

At 5pm, E&O shares closed unchanged at 90 sen with 804,100 units traded. The stock had earlier risen to its intraday high at 91 sen and fallen to its intraday low at 89.5 sen.

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