PETALING JAYA: Farm Fresh Bhd
is proposing to raise up to RM200mil via a proposed private placement exercise to accelerate the expansion of its regional dairy operations and increase its stake in premium ice cream maker, The Inside Scoop.
In a filing with Bursa Malaysia, the integrated dairy group said it plans to issue up to 109.65 million new ordinary shares, representing about 5.8% of its existing share capital based on an illustrative issue price of RM1.824 per share.
Of the proceeds, RM148.3mil has been earmarked for capital expenditure over the next 24 months, with RM92mil allocated to accelerate the group’s expansion in Cambodia.
Beyond infrastructure spending, RM50mil of the placement proceeds will be used to fund the exercise of a put option by Edmund Tan, co-founder of The Inside Scoop Sdn Bhd (TISSB).
Farm Fresh had received a notice on Aug 28 requiring it to acquire an additional 20% stake in TISSB from Tan.
