KUALA LUMPUR: Eastern & Oriental Bhd (E&O) shareholders yesterday approved the group's recapitalisation exercise that will raise between RM220mil and RM327.2mil to pare down borrowings and comply with the public spread requirement of its property unit, E&O Property Development Bhd (E&O Prop).
With the proposed fund-raising exercise, E&O's net gearing level will improve to below 1.0 from 2.7 times currently, while its shareholding in E&O Prop will come down to 73% from 79.05%, thus meeting the required 25% public spread.