Sep 10, 2010
Mah Sing proposes to issue RM325m bonds
PETALING JAYA: Mah Sing Group Bhd proposed issuance of up to RM325mil nominal value of seven-year redeemable convertible secured bonds and increase in the authorised share capital of the company to RM1bil comprising 2 billion shares.
In a filing with Bursa Malaysia, Mah Sing said the issue price of the bonds would be determined later and the bonds would be issued on a “bought deal” basis.
“The proposed bonds issue will raise gross proceeds of up to RM325mil. The gross proceeds will be utilised for land acquisitions, working capital purposes as well as to defray estimated expenses arising from the bonds issue,” it said.
The company said the proposed bonds issue would provide Mah Sing with additional funds at an attractive fixed-financing cost to implement its strategy and capitalise on opportunities as and when they arose.
Based on the unaudited consolidated financial statements of the Mah Sing group as at June 30, the group had shareholders funds of RM858mil and a net gearing ratio of 0.05 times.
“In the immediate term, we will continue to focus on medium to high-end residential, industrial and commercial projects as these projects are profitable and cash-flow generative,” it said.
For the medium term, the company will focus on acquiring sizeable landbank for potential mass-housing development either on outright purchase or joint-venture basis.
Meanwhile, it will continue to explore overseas markets with high-population growth to tap their population-led demand for properties over the long term.
The company said the authorised share capital of Mah Sing was RM500mil comprising 1 billion Mah Sing shares to-date, of which 831,568,839 Mah Sing shares have been issued and credited as fully paid-up.
“In order to accommodate the issuance of new Mah Sing shares as a result of the conversion of the bonds, the company is proposing to increase its authorised share capital to RM1bil comprising 2 billion Mah Sing shares by the creation of 1 billion new Mah Sing shares,” it said.
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