PETALING JAYA: PRG HOLDINGS BHD’s share price has shot up more than 50% in the last one month, following its venture into the teak tree and commercial crops plantation business.
Yesterday, PRG released its circular to shareholders in relation to the proposed acquisition by its wholly owned subsidiary, PRG Agro Sdn Bhd, of two parcels of agriculture land planted with teak trees in Kelantan from Alifya Forestry Sdn Bhd for RM89.2mil.
This will be satisfied by a combination of cash of RM59.2mil and the issuance of 40.3 million new ordinary shares in PRG at an issue price of 74.45 sen each (RM30mil).
From the 59-sen level on Aug 23, PRG’s share price has increased 57% to its current price of 93.5 sen.
Yesterday, PRG closed 2.5 sen higher to 93.5 sen. This is a premium of 25.6% compared to the price of the new shares that will be issued for this acquisition.
The issuance of new shares will see PRG’s share capital increasing from 362.59 million shares to 402.88 million shares. Its paid-up capital will also increase from RM104.89mil to RM134.89mil.
The valuer, Raine & Horne International Zaki+Partners Sdn Bhd, has been appointed by PRG to conduct an independent valuation on the land in relation to the proposed acquisition.