KTB rights issue to raise RM60mil

by **Cals** Mon 22 Sep 2014, 02:05

Published: Saturday September 20, 2014 MYT 12:00:00 AM
Updated: Saturday September 20, 2014 MYT 9:01:59 AM

[size=40]KTB rights issue to raise RM60mil[/size]

PETALING JAYA: Konsortium Transnasional Bhd (KTB), which is controlled by Tan Sri Mohd Nadzmi Mohd Salleh, will be raising some RM60.42mil from a rights issue exercise that will be utilised for working capital within three months of receiving the proceeds.
In an announcement to Bursa Malaysia, KTB said it was proposing a renounceable rights issue of 604.2 million new ordinary shares of 10 sen each in KTB on the basis of three rights shares for every two ordinary shares of 10 sen each in KTB held on an entitlement date, after the completion of a proposed capital reduction.
The bus operator is also proposing a capital reduction of its issued and paid-up share capital, involving the cancellation of 40 sen of the par value of each ordinary share of 50 sen each.
As at Sept 8, the total issued and paid-up share capital of KTB was RM201.4mil, comprising 402.8 million shares of 50 sen each.

The accumulated losses of KTB at the company level and group level based on the audited financial statement of KTB and its subsidiaries for the financial year ended Dec 31, 2013 were about RM148.63mil and RM56.9mil, respectively.
The total credit arising from the proposed capital reduction will be utilised to set off the company’s accumulated losses.
“Save for the reduction in its par value from 50 sen to 10 sen, all ordinary shares of KTB standing to the credit of the securities account of KTB shareholders shall be unaffected as a result of the proposed capital reduction,” said KTB.
Hence, there will be no adjustment to the market price of the new KTB shares quoted on Bursa.
The board has fixed the issue price of the rights shares at 10 sen per rights share after taking into consideration the par value of KTB shares at 10 sen each after the proposed capital reduction, the theoretical ex-rights price of the KTB shares based on the five-day, volume-weighted average market price up to Sept 18, and the funding requirements of KTB.
The listing of and quotation for the rights shares are expected to be completed by the first quarter of calendar year 2015.
Prior to the rights issue, the substantial shareholders of KTB were Kumpulan Kenderaan Malaysia Bhd (32.11%), Lengkap Suci Sdn Bhd (16.36%), Nadicorp Holdings Bhd (25.02%) and Nadzmi (1.19%).
They have provided an irrevocable written undertaking to subscribe in full for their respective entitlements in respect of their direct shareholdings in KTB.