Country Heights to raise RM1b for new biz ventures, says Kim Yew

SERI KEMBANGAN: Country Heights Holdings Bhd (CHHB) plans to raise RM1bil for its "war chest" to help fund four new business ventures.

The loss-making property developer said the funds will be raised either through borrowings or the issuance of bonds, or via strategic partnerships.

Group executive chairman Tan Sri Lee Kim Yew said the new business ventures, each with a GDV of over RM1bil, represented the transformation of the group.

"We are transforming ourselves from being purely a property player - there is too much competition," he told a press conference on Wednesday.

The new ventures are restrategising the hospitality and resorts segment; developing a wellness, anti-aging and aesthetics business, creating a "car city centre"; and building a trade and Islamic financial centre in Malacca. 

Earlier, the company announced to Bursa Malaysia it had proposed a bonus issue of up to 137.853 million on the basis of one warrant for every two existing shares held.

The bonus issue of warrants was not expected to raise any immediate funds as the warrants will be issued at no cost to entitled shareholders.

CHHB said the exercise price of the warrants would not be at a discount of more than 10% to the five-day volume weighted average price (VWAP) of the shares prior to the price-fixing date.
It said the exercise price of the warrants would be assumed at RM1.41. 

The exercise price of warrants would be 50% of the audited net asset per share of RM2.83 for the financial year ended Dec 31, 2017. 

Corporate News , Property