GW Plastics' revised terms of regularisation plan get SC nod

by **Cals** Sat 20 Dec 2014, 00:56

GW Plastics' revised terms of regularisation plan get SC nod

KUALA LUMPUR (Dec 19): GW Plastics Holdings Bhd has received the Securities Commission's (SC) nod for the revised terms of its regularisation plan to help lift it out of its Practice Note 17 status.
In a filing with Bursa Malaysia today, GW Plastics said the SC had in a letter dated Dec 18 approved the company’s application to seek the regulator’s approval for the revised terms, which was subject to certain terms and conditions (T&Cs).
One of the T&Cs stipulated by the SC for GW Plastics is that its proposed acquisition of the entire stake in MCT Consortium Bhd for RM1.15 billion will be executed after the completion of a reorganisation exercise from Tan Sri Goh Ming Choon and Datuk Seri Tong Seech Wi.
The purchase consideration is to be satisfied via issuance of 1.03 billion GW Plastics shares and RM122.21 million irredeemable convertible unsecured loan stock (ICULS) which have been approved by the SC.
The SC’s approval is also subject to the proposed renunciation of Goh and Tong’s rights of allotment to 3.53 million consideration shares in favour of the then existing shareholders of GW Plastics, on the basis of three free shares for every two new shares held by the the shareholders.
In addition, the approval by the SC is subject to a proposed private placement, a proposed vendors' restricted offer for sale and to shareholders, a proposed bumiputera issue, a proposed additional renunciation of shares, restricted offer for sale to shareholders and the listing and quotation of all new shares to be issued pursuant to the regularisation plan, including the new shares upon the conversion of the ICULS.
"The approval of the SC for GW Plastics' proposed regularisation plan is also subject to the company allocating at least 12.5% of its enlarged capital to bumiputera investors to be recognised by the Ministry of International Trade and Industry," said GW Plastics.
Its current bumiputera shareholding stands at 26.85% before its proposed regularisation plan, and is expected to be at 13% after the plan is enforced.
According to theedgemarkets.com, GW Plastics scored 1.2 for its fundamental rating, 0.3 for its valuation and 3 for volatility.
Fundamental rating refers to the strength of the company's balance sheet and profitability of the company, with a score of 3 suggesting that it is profitable and has strong balance sheet, while valuation refers to the value of the stock in the capital market, with 3 suggesting a company gives higher than market average returns and is trading at a lower than average valuation.
Volatility of a stock is based on its share price movements relative to the whole market over a period, on a scale of 1 to 5, 1 being the least volatile.