Regulators in Malaysia, Singapore, Indonesia and Thailand have also placed Financial.org on alert lists of unauthorised firms with whom investors should exercise caution.
KUALA LUMPUR: EA Holdings Bhd
has proposed a bonus issue of up to 1.6 million warrants on the basis of five free warrants E for every 16 existing shares in the company.
The exercise price of the warrants are yet to be determined but the indicative price is four sen, a discount of about 0.5% to the five-day volume weighted average market price of EA shares up to Dec 13.
In the same announcement, the group said it proposes to acquire 90% equity interest in SUnland Volonte Agency Sdn Bhd in a cash-and-share deal for RM78.75mil.
Payment for the purchase will comprise RM15mil cash and the issuance of 1.59 billion new ordinary shares in EA at the issue price of four sen per share, amounting to RM63.75mil.
Among the considerations, the vendor has guaranteed a cumulative profit after tax of RM14mil for two financial years. Given EA's 90% stake in the company, the profit guarantee will be about RM6.3mil for each financial year.
"The acquisition of Sunland’s operations forms part of the long term strategic plan to diversify into new areas and viable businesses as upon completion of the Proposed Acquisition and Proposed Diversification, Sunland will be the subsidiary of EAH and accordingly, the business segments of the enlarged EAH Group will include the business involving the sales and distribution of packet drinks, snacks and related products," the group said in its announcement.
EA and its subsidiaries are engaged in the business of management and consultancy services as well as ICT and systems services and development.
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