TWL shareholders approve RM111.3mil rights issue to fund development projects

KUALA LUMPUR: TWL Holdings Bhd’s shareholders today approved the proposed renounceable rights issue of up to RM111.3 million nominal value of 5.6 billion five-year redeemable convertible unsecured loan stocks (RCULS) with up to 1.1 billion free detachable Warrants E.

TWL said in a statement that it would be on the basis of 10 RCULS together with two free Warrants E for every 10 existing shares held by entitled shareholders on the entitlement date.

The company said the fund raised from this issuance, which would range from RM25 million to RM111.3 million, would be mainly used to undertake three affordable housing development projects under the Rumah Selangorku scheme, comprising a total of 2,600 housing units, with a total gross development value of RM624 million.

"We are confident that we will be able to raise the necessary funds to undertake the development projects that are expected to contribute positively to the group’s future earnings,” said managing director Shirley Tan.

She said the group was committed to delivering the project for affordable housing that targets the local community to support the government initiatives under Budget 2023 to build and provide affordable houses.

"The shortfall in TWL’s funding requirements for the three projects is expected to be met via internally generated funds and bank borrowings,” she added.- Bernama