Sabah-based Victoria Capital now owns 6.51% of Borneo Oil

KUCHING: Borneo Oil Bhd, which has proposed a fund-raising exercise to finance new projects, has seen major shareholding changes.

Substantial shareholder Victoria Capital Sdn Bhd has raised its equity interest in Borneo Oil, which owns fast food chain SugarBun, to nearly 15.1 million shares with the acquisition of an additional 3.36 million shares priced at 62.8 sen each in the open market on June 9, according to a filing with Bursa Malaysia.

Sabah-based Victoria Capital now owns 6.51% of Borneo Oil, which has a current market capitalisation of around RM150mil.

A separate filing showed that Borneo Oil resold 420,000 treasury shares at prices between 65 sen and 66.5 sen on June 10. The resale came less than a month after the company bought back 615,000 shares at 62 sen each. The resale has reduced the company’s net outstanding treasury shares to about 1.66 million units.

Last month, Borneo oil announced a proposed private placement, which is expected to raise up to RM35.5mil, upon the completion of a proposed par value reduction. The proposed exercise would involve the issuance of new shares up to 20% of the company’s issued and paid up share capital.

The proposed par value reduction would involve the cancellation of 90 sen of the par value of the existing share of RM1 each to offset the company’s accumulated losses of RM32.5mil.

By reducing the par value of the company shares to 10 sen each would, according to Borneo Oil, provide flexibility for the company to embark on future fund-raising or other corporate exercises.

Borneo Oil intends to use RM5mil raised from the private placement to set up a new fast food central processing plant here to cope with the increasing demand for food ingredients from SugarBun business.

The group currently has some 70 franchised SugarBun restaurants both in Malaysia and overseas, with the bulk in Sarawak.

Another RM15mil would be used to purchase new mining plant and equipment as well as to finance gold exploration activities in Pahang.

Wholly-owned subsidiary Borneo Oil & Gas Corporation Sdn Bhd was recently appointed by Champmark Sdn Bhd as the contractor to carry out prospecting and mining of alluvial and ode gold on an exclusive basis in an area covering 162ha in Mukim Batu Yon, Lipis district.

Article type: metered
User Type: anonymous web
User Status:
Campaign ID: 1
Cxense type: free
User access status: 3
Join our Telegram channel to get our Evening Alerts and breaking news highlights

Business , borneo oil


Stories You'll Enjoy