KUALA LUMPUR: Seacera Group Bhd
managed to pare losses at midday after opening lower following news that its major shareholder is injecting at least RM30mil into the company to resolve its cash flow and credit liability.
The tile manufacturer, one of the most active counters, fell 4.48%, or 1.5 sen to 32 sen with over 27.19 million shares done at midday. The counter fell to a low of 28 sen earlier. Year-to-date, it has gained some 65%.
Earlier, Seacera has warned that it is potentially headed towards a default on its payment obligations in the highly likely event that it will not be able to proceed with its settlement proposals in time.
However, Datuk William Tan Wei Lian, the single largest shareholder of Seacera with a 16.4% stake, has pledged to inject RM30mil, or more into the company to resolve its cash flow and credit liability, if need be.
Tan pledged was in response to Seacera management’s earlier announcement on the necessity to carry out two proposals to avoid “a grave financial condition.”
The proposals are the settlement of RM31.31mil that the group owes to creditors by issuing 149.09 million new Seacera shares and a private placement of up to 126.34 million new Seacera shares, representing about 30 per cent of Seacera’s existing issued share capital.
Tan refuted the need to carry out the proposals, saying the company had net assets totalling about RM838mil and 501-acre land free from encumbrances with a book value of about RM784mil.
“Seacera’s receivables amounts to approximately RM90mil. In addition, the company raised approximately RM15mil from the issuance of the employee share option scheme (ESOS) within February and March this year,” he added.
Tan had called for the EGM to be held on May 15, 2019 to appoint six new directors and to remove eight existing directors of the company.
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