In a filing with Bursa Malaysia, Country View said that the acquisition
KUALA LUMPUR: Priceworth International Bhd
has revised its proposed rights issue with bonus shares due to the new no-par-value regime under the Companies Act 2016.
The timber and sustainable forest management group said on Fridat that with the abolition of par value, the two-for-one rights issue will now consist a single call of five sen per share, payable in cash, instead of a two-call exercise.
Earlier, Priceworth had proposed the two-call rights issue with a first call of five sen cash per share and a second call of five sen per share capitalised from its share premium and capital redemption reserve accounts.
It said the proposed bonus issue of one share for every two rights shares subscribed remains unchanged.
Priceworth executive director Richard Koo pointed out that aside from raising funds, the corporate exercise would enable its shareholders to participate in the company's transformation.
The funds will go towards reducing the group’s debts, ahead of the completion of the Forest Management Unit 5 (FMU5) acquisition. Priceworth expects to reduce its borrowings to RM45.98mil, from RM133.5mil currently, and its gearing to 0.11 times from 0.43 now.
In October 2016, Priceworth proposed to acquire FMU5, comprising roughly 89,000 hectares of Class II commercial forest reserves, for RM260 million. FMU5 is to be managed as sustainable forest under a licence expiring in 2097.
The company started harvesting in two sections within FMU5 in late 2017.
The contribution from FMU5 saw Priceworth tripling its first half net profit to RM4.78mil from RM1.32 mil earlier. Its revenue jumped 32.5% to RM89.3mil from RM67.4mil before.
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