KUALA LUMPUR (June 1): Pasdec Holdings Bhd, a unit of the Pahang State Development Corp (PKNP), said PKNP has yet to receive approval from the Finance Ministry for the statutory body to subscribe for its entitlement under Pasdec's rights issue with warrants.

Pasdec said it was informed of this by PKNP today, the company said in a filing to Bursa Malaysia.

PKNP, as a statutory body of the state of Pahang, is subject to the Finance Ministry's approval for any investments above RM5 million.

Pasdec said that in view of this, the company has received an irrevocable undertaking from Jasa Imani Sdn Bhd (JISB) to subscribe for additional 42.56 million rights shares with 42.56 million warrants, representing the entire entitlement of PKNP in the rights issue.

"The additional undertakings were provided in order to ensure that the rights issue with warrants can be undertaken on a full subscription basis in the event there are rights shares not subscribed by PKNP," the company said.

Pasdec said JISB has confirmed that it has sufficient financial resources to subscribe for the additional undertakings.

If JISB subscribes for the additional undertakings, its shareholding in Pasdec after the rights issue exercise will be 38.91%, exceeding PKNP's share of 26.57%.

Pasdec said if JISB's stake exceeds 33%, it will be required to undertake a mandatory offer.

Pasdec had in October 2016 proposed to undertake a capital reduction to half the par value of its share, making way for the acquisition of office units worth RM40 million and subsequently from JISB, a rights issue to raise up to RM34.32 million.

It intends to buy the office units, collectively priced at RM40 million, via the issuance of new shares.