THHE proposes private share placement to GCL and Quek

Business & Markets 2013
Written by Shalini Kumar of theedgemalaysia.com
Tuesday, 07 May 2013 10:00
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KUALA LUMPUR: TH Heavy Engineering Bhd (THHE) has proposed a
private placement of 92.79 million new shares, or about10% of its share
capital, to GuoLine Capital Ltd (GCL) and Quek Kon Sean.
GCL, an indirect wholly owned subsidiary of Hong Leong Co (M) Bhd,
will subscribe for 7% or about 65 million of the placement shares. Quek,
a director of Hong Leong Bank, will subscribe for the rest of the shares.
In an announcement to Bursa Malaysia yesterday, THHE said the
placement shares are priced at 45 sen each, which represents a
discount of 0.64% to the five-day volume weighted average price.
The proposed placement is expected to raise gross proceeds of up to
RM41.8 million, and is expected to be completed next month.
“The said proceeds shall be utilised by THHE and its subsidiaries for
working capital purposes and/or potential investment projects related to THHE’s business as well as to defray the estimated
expenses in relation of the proposed private placement,” THHE said in its filing.
THHE’s share capital will increase to 1.02 million 25 sen shares upon full placement of the shares to GCL and Quek.
Lembaga Tabung Haji, which currently controls 32% of THHE, will see a dilution in its stake to 29% after the entry of GCL and
Quek.
THHE shareholders approved the share placement during the company AGM on May 23 last year. Approval from Bursa
Malaysia Securites is pending.
“The proposed private placement provides an additional avenue to raise funds in an expeditious manner while at the same
time enhancing the company’s investor profile.
“It will enable THHE to raise funds without incurring interest cost compared to bank borrowings,” THHE said.
The share placement is not expected to have a material effect on the earnings of the group for the 2013 financial year ending
Dec 31. However, its earnings per share shall be correspondingly diluted.
Formerly known as RAMUNIA HOLDINGS BHD [], THHE is involved in the heavy engineering industry, principally in the
fabrication of offshore steel structures and the provision of other related offshore oil and gas engineering services in
Malaysia.