Thursday 28 Mar 2024
By
main news image

KUALA LUMPUR (Oct 25): Ekovest Bhd’s 30.44%-owned associate company, PLS Plantations Bhd, has proposed to raise up to RM1.05 billion via a renounceable rights issue with free warrants to expand its durian plantation business.

The company plans to undertake the rights issue involving up to 1.05 billion new redeemable preference shares in PLS at an illustrative issue price of RM1 per RPS on a two-for-one basis.

It also proposed to issue 175.35 million new free warrants, on the basis of one warrant for every two ordinary shares.

Of the total RM1.05 billion to be raised from the proposed rights issue, PLS said it plans to invest RM723.13 million in its new durian plantation business as announced in March.

This includes financing the potential acquisition of any suitable durian plantation land, cultivating and planting durians, and the maintenance of these durian plantations.

Another RM195 million will be used for the expansion of its downstream durian business, by acquiring facilities, upgrading and renovation works on existing factories, purchasing new machinery and expansion of new retail outlets.

Excluding the RM1.85 million expenses estimated for the proposals, PLS plans to use RM109.37 million for the repayment of its borrowings and the remainder of RM22.75 million as general working capital.

In a separate exchange filing, Ekovest, controlled by businessman Tan Sri Lim Kang Hoo, said it has provided an irrevocable undertaking to subscribe in full all of its rights entitled under the proposed rights issue by PLS, which means it will be injecting at least RM213 million into its associate company.

“Pursuant to the undertaking, Ekovest will subscribe for its rights entitlement of not less than 213.51 million RPS with an aggregate sum of not less than RM213.51 million,” read the filing.

The proposals, subject to authorities’ approval, are expected to be completed by the second quarter of next year.

Shares in PLS closed one sen up at 70 sen today, bringing it a market capitalisation of RM245.49 million. Ekovest, meanwhile, finished a sen lower at 77 sen, valuing it at RM2.04 billion.


Read more:

https://www.theedgemarkets.com/article/fgv-collaborates-pls-plantation-and-three-chinese-companies-venture-durian-plantations

https://www.theedgemarkets.com/article/lim-kang-hoo-pls-plantations-can-turn-profitable-fy20

https://www.theedgemarkets.com/article/ekovest-buy-2342-stake-pls-plantations-exec-chairman-lim-kang-hoos-firm

      Print
      Text Size
      Share