GO for FCW on the cards

PETALING JAYA: FCW Holdings Bhd chairman Tan Sri Robert Tan has decided to make a general offer (GO) for the company if his stake rises above 33% after a proposed rights issue.  

FCW said in a statement on Wednesday that Tan and persons acting in concert with him would extend a mandatory general offer (MGO) for all the remaining shares, if their combined stake crossed 33% after the rights issue. 

That would occur if the rights issue were undersubscribed by minority shareholders. Tan gave an undertaking to fully subscribe for his entitlement to the rights issue.  

Earlier, in a statement in January, FCW said that in that event, Tan and persons in concert would seek a waiver from the Securities Commission (SC) from making the MGO. 

The company said in its latest statement that “after further reassessment, Tan Sri Tan Hua Choon and persons acting in concert with him had decided not to proceed to seek a waiver from the SC from the obligation to undertake an MGO.” 

FCW also said that on Wednesday, it accepted CIMB Bank's offer of a short-term credit facility of RM61.4mil for it to part-finance the proposed purchase of several pieces of land and warehouses along Jalan Segambut, Kuala Lumpur, from Goh Ban Huat Bhd.  

The purchase of these properties forms a large part of FCW's restructuring scheme aimed at lifting the stock from its current Practice Note (PN) 17 status.  

It is believed the company fell under PN17 through its reduced scale of operations rather than financial problems. The company held cash of RM16mil and did not have any borrowings at the end of last year.  

FCW said the credit facility was to facilitate an early completion of the proposed purchases. 

The facility would be repaid upon completion of its rights issue. The company had proposed a rights issue priced at 50 sen a share.  

Tan is well known in the corporate circle as he owns or is associated with seven other public-listed companies – GPA Holdings Bhd, Keladi Maju Bhd, Jasa Kita Bhd, Marco Holdings Bhd, Malaysia Aica Bhd, PDZ Holdings Bhd and United Bintang Bhd. 

 FCW :  [Stock Watch]  [News]

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