Amprop plans cash call to raise up to RM597mil

It is perhaps a compulsion of mankind to live as close as possible to a natural and healthy environment, away from all the pollution.

KUALA LUMPUR: Amcorp Properties Bhd (Amprop) plans to raise up to RM597.2mil through the issuance of perpetual preference shares.

In a filing with Bursa Malaysia, the property development and power generation firm proposed to undertake a renounceable rights issue of new Class B redeemable convertible preference shares (RCPS B).

The entitlement basis for the proposed rights issue, issue price and conversion ratio for the RCPS B have not been determined.

However, Amprop estimated that a shareholder holding 1,000 AmProp shares would need to make a capital outlay of RM800 to fully subscribe to his entitlement.

The proposed rights issue, which can be subscribed in full or in part, will have a noncumulative dividend rate of about 4% per annum.

Amprop intends to procure from its major shareholder Amcorp Group Bhd an irrevocable undertaking to subscribe in full and/or procure the subscription in full of its entitlement under the proposed rights issue, or sufficient RCPS B such that the aggregate issue price is no less than the minimum subscription level.

Amprop, which aimed to raise no less than RM350mil, said it would set aside RM238.4mil to repay part of the group’s bank borrowings and RM95.0mil for existing property projects and investments whether it achieved the low or high end of its target range of proceeds.

The total bank borrowings of the group are about RM628.6mil, and it expects the part repayment of bank borrowings to result in interest savings of about RM9.5mil per year based on the average interest rate of 4.0% per annum.

The company will also allocate between RM14.1mil and RM261.3mil for future property development projects, investments/acquisitions and working capital.

The board expects to complete the proposed rights issue by the first quarter of next year.