KUALA LUMPUR (Mar 14): UMW Holdings Bhd shares fell 7.70% this morning after the company said it is seeking to raise up to RM1.1 billion via a rights issue to help fund the acquisition of a 50.07% stake in MBM Resources Bhd.

At 9.32am, UMW lost 50 sen to RM5.99 with 386,100 shares traded.

The group said the proposed rights issue is to primarily repay a bridging facility to be obtained by the group to acquire the 50.07% equity interest in MBM, as well as the resultant mandatory take-over offer for the remaining shares.

The final quantum of gross proceeds to be raised can only be determined after the closing date of the mandatory offer. Accordingly, the entitlement basis for the proposed rights issue and the issue price for the rights shares will only be fixed at a later date.