Moody's outlook on the Korean banking system has been negative since May 2016.
KUALA LUMPUR: Chemical Company of Malaysia Bhd's (CCM) is expected to see substantial savings from a de-gearing exercise announced yesterday.
According to CCM group managing director Leonard Ariff Abdul Shatar, the group would likely see its interest costs to loans reduced by three quarter from the annual RM21mil payment currently post its proposed private placement and land sale exercise.
"At present, we pay RM21mil annually in interest costs, post de-gearing exercise, our interest costs would only be a quarter of that," he told reporters at a briefing here today.
"In absolute terms, we're looking to bring down our total loan level from the current RM400mil to RM100mil," he explained.
CCM said its proposed corporate exercise was part of the plan to improve its capital structure.
The move, it said in its filings with Bursa Malaysia, is expected to increase its earnings per share and net asset value.
Under the plan, CCM plans to raise up to RM257.6mil through a private placement of up to 10% of its share capital and the disposal of three parcels of land measuring 70.93 acres in Shah Alam, Selangor.
Proceeds from the fundraising and disposal of land will be used to repay its borrowings.
CCM will distribute its entire 73.4% stake in CCM Duopharma
to its shareholders, a move that will see the demerger of the two companies.
