Ekovest to plow RM213.5mil into durian company PLS Plantations

KUALA LUMPUR: Ekovest Bhd has given a RM213.5mil irrevocable undertaking to fully subscribe its portion of rights shares to be issued by PLS Plantations Bhd.

Ekovest, controlled by its executive chairman Tan Sri Lim Kang Hoo, has a 30.4% stake in PLS Plantations.

Ekovest, in a filing with Bursa Malaysia today, said PLS Plantations has proposed a renounceable rights issue of up to 1.052 billion new redeemable preference shares (RPS) at RM1.00 per unit.

Assuming that the RPS are fully subscribed by all shareholders in the company, PLS Plantations will raise as much as RM1.05bil in fresh capital.

The bulk of the proceeds from the fund raising exercise, PLS Plantations said in a separate filing with the stock exchange today, will be utilised to expand its durian business.

The RPS will be issued on the basis of two 2 RPS for every one PLS share. Shares in PLS Plantations ended Friday flat at 70 sen.

"Ekovest on Oct 25 has provided an irrevocable undertaking to PLS to subscribe in full all of its rights entitlement under the proposed rights issue," the construction firm said in its filing.

This means the construction company will subscribe for its rights entitlement of not less than 213.5 million RPS with an aggregate sum of not less than RM213.5mil.

PLS Plantations has set aside RM94.5mil from the minimum amount to be raised to expand its durian plantation.

Another RM95mil was allocated for expansion of its downstream activities, while RM22.16mil was earmarked for general working capital purposes.

PLS has proposed to issue free warrants to shareholders prior to the issuance of RPS.

This will be done on the basis of one free warrant for every two PLS shares held at a date to be determined later. The company said this exercise involved the issuance of up to 175.35 million new free warrants.

In March, Ekovest paid RM76.2mil for a 23.42% stake loss-making PLS Plantations at RM1 a share.

PLS Plantations, in October last year, acquired a 70% share in durian exporter Dulai Fruits Enterprise Sdn Bhd for RM21mil.

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Ekovest , PLS Plantations , durian , Lim Kang Hoo


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