KUALA LUMPUR (Nov 20): Evergreen Fibreboard Bhd (EFB) announced today that it intends to undertake a private placement offering of common shares at a price to be fixed at a later date, to finance its development and business expansion, repay borrowings and for working capital.

In a filing with Bursa Malaysia today, the medium density fibreboard producer said based on the indicative issue price of RM1.95 per placement share, it will raise up to RM100.03 million.

The proposed private placement entails a placement of up to 51.3 million new shares of 25 sen each in EFB, which represents up to 10% of the issued share capital of the group.
 
EFB also proposed to undertake a bonus issue, involving the issuance of up to 282.14 million bonus shares on the basis of one bonus share for every two EFB shares to reward its existing shareholders and enhance the stock's marketability and trading liquidity.

This will be implemented after the completion of the proposed private placement in a single issuance.

"The actual number of bonus shares to be issued can only be determined after the proposed private placement, based on the then issued and paid-up share capital of EFB," said the group.

"Barring any unforeseen circumstances and subject to all relevant approvals being obtained, the proposals are expected to complete by the first quarter of 2016," it added.

EFB shares closed down 3 sen or 1.38% to RM2.14 today, bringing a market capitalisation of RM1.1 billion.
 
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