Friday 29 Mar 2024
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KUALA LUMPUR (Aug 8): Engineering systems provider Metronic Global Bhd has proposed to undertake a private placement to raise up to RM9.41 million, the bulk or RM9.25 million to be used for the development of smart city solutions in Malaysia, in partnership with a Chinese company.

Metronic yesterday announced that it has teamed up with China's Zhuhai Singyes New Materials Technology Co Ltd (Singyes), and that its wholly-owned subsidiary Metronic Engineering Sdn Bhd (MESB) had signed an agreement with Singyes to form a JV company for the purpose. MESB will hold 80% equity in the JV company and Singyes, the balance.

In a filing with Bursa Malaysia today, the loss making company said: “This is in line with the group’s initiative to seek out value accretive investments that can complement its existing engineering business, while providing an additional source of income. In turn, this is expected to contribute positively to the earnings of the group.”

Under the partnership, the JV company will develop a smart land transportation system, solar panel system, outdoor or indoor smart digital signage, smart film and smart glass and camera system, as well as set up an advance data centre to collect big data from a smart city, which will be used for data analysis in township planning, development and monitoring purposes.

Metronic said it would issue up to 156.83 million shares in the placement, or 10% of its 1.57 billion issued capital, assuming all outstanding warrants are exercised and all employees’ share option scheme are fully granted.

As at July 31, Metronic said its issued capital is comprised of 1.13 billion shares.

It said the estimated proceeds to be raised is based on six sen per placement share, or a discount of not more than 10% to 6.56 sen, which was the group’s five-day volume-weighted average market price (VWAP), up to and including July 31.

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