LBS proposes private placement

by **Cals** Wed 19 Mar 2014, 22:11

Business & Markets 2014

Written by Jeffrey Tan of theedgemalaysia.com

Wednesday, 19 March 2014 19:44

KUALA LUMPUR (Mar 19): LBS Bina Group Bhd has proposed a private placement of up to 10% of the property developer's issued and paid-up share capital. This translates into 47.1 million new shares in the company.

In a filing to Bursa Malaysia today, LBS said it planned to place out the shares to third-party investors. The issue price would be determined at a later date.

"The placement shares will be issued at a price of not more than 10% discount to the five (5)-day weighted average market price of LBGB (LBS) shares immediately preceding the price-fixing date.

"In any event, the issue price of the placement shares shall not be lower than the par value of LBGB shares of RM 1.00 each," LBS said.

The number of shares to be issued under the private placement will be raised to 58.3 million new units, assuming all the treasury shares, besides outstanding employees' share option scheme and warrants are exercised prior to the implementation of the share placement.

LBS said the share placement was not expected to have any material effect on the earnings of the group for financial year ending December 31, 2014.

The firm however said there would be a reduction in the earnings per share of the group. This is in anticipation of an increase in the LBS' share base as a result of the exercise.

LBS said the share placement proceeds would be used to finance new property development projects. These include additional land acquisitions and general working capital.

The private placement is expected to be completed in the second quarter this year.