New high for Dagang NeXchange Bhd
KUALA LUMPUR: Scomi Group Bhd hopes to raise about RM155mil from the exercise of the free warrants which will be issued under the proposed merger of its subsidiaries Scomi Energy Services Bhd
and Scomi Engineering Bhd and resultant privatisation.
Scomi Group issued the statement to Bursa Malaysia on Tuesday that it had submitted a formal proposal to undertake the proposed corporate exercise and mergers. Trading will resume at 2.30pm on Tuesday.
The exercise included a proposed consolidation of every two existing ordinary shares in the capital of the company into one ordinary share.
It also proposed a bonus issue of up to 671.12 million warrants in Scomi Group on the basis of seven warrants for every 10 consolidated shares.
The exact quantum of proceeds that may be raised from the exercise of the warrants is dependent on the total number of warrants to be exercised during the tenure of the warrants.
“Assuming the warrants are fully exercised at the exercise price of 21 sen each, the maximum proceeds that may potentially be raised are approximately RM155mil,” it said.
Scomi Group said the proposed share consolidation will rationalise the share capital of the company by reducing the number of shares issued and could potentially reduce the volatility in the share price as a result of the higher theoretical share market price.
As for the proposed bonus issue of warrants, Scomi Group said it would provide the company with additional working capital when the warrants are exercised.
“The proposed mergers are in line with Scomi’s intention to obtain full control of Scomi Energy and Scomi Engineering, and would provide greater flexibility for Scomi to plan and decide on the business strategic planning across existing geographical locations of the merged group,” it said.
“The proposed mergers paves the way for integration of business activities of Scomi Energy and Scomi Engineering, enabling the merged group to leverage on the combined financial resources and strengths to compete in and undertake future business contracts, and pursue growth opportunities in both the energy and transport industries that it is familiar with,” it added.
Scomi Group also said the de-listing of Scomi Energy and Scomi Engineering after the proposed mergers was expected to eliminate any overlap of administrative efforts and costs associated with maintaining the listing status of the said companies, and allow Scomi to re-divert resources towards its business operations.
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