BOUSTEAD TO RAISE OVER RM1 BILLION VIA RIGHTS ISSUE
& OFFERS BONUS SHARES TO SHAREHOLDERS
KUALA LUMPUR, January 18, 2016 – Boustead Holdings Berhad (BHB) announced a proposed renounceable rights issue of up to 413,671,221 new shares of RM0.50 each. The proposed rights issue is on the basis of two new shares for five BHB shares held at an entitlement date that will be determined later. The proposed rights issue is expected to raise over RM1 billion.
The issue price for the rights share will be determined based on a discount of approximately 30% to the theoretical ex-rights price which will be based on the volume-weighted average market price of BHB shares to be determined.
In addition, BHB also announced a proposed bonus issue which involves the issuance of bonus shares on the basis of two bonus shares for five BHB shares held by shareholders of BHB after the proposed rights issue.
YBhg Tan Sri Dato’ Seri Lodin Wok Kamaruddin, Deputy Chairman/Group Managing Director, Boustead Holdings Berhad, said, “The proposed rights issue and bonus issue fulfil our goals of improved financial flexibility and enhanced liquidity. It also allows us to reward our loyal shareholders for their continuous support through the opportunity for greater participation in the equity of BHB.”
“We are confident that the attractive 30% discount to the theoretical ex-rights price offered through the proposed rights issue will resonate with astute investors. The Boustead Group has had a sterling track record in terms of dividend yield despite the headwinds in the market. A discount of this nature should factor in well with long-term investors who are eyeing for a solid investment in a diversified conglomerate.”
YBhg Tan Sri Dato’ Seri Lodin concluded, “We will be utilising the proceeds from the rights issue efficiently and strategically. Apart from paring down our current gearing, the proceeds will be utilised to fund the Group’s property development and property investment activities. In addition, a portion of the proceeds will also act as working capital as we move forward to seize the opportunities that lie ahead for the Group and its subsidiaries.”
Since its inception as a modest trading entity more than 180 years ago, the Boustead Group has grown by leaps and bounds to comprise more than 90 subsidiaries, associate companies and joint ventures, and has substantial interests in various sectors of the Malaysian economy. The Boustead Group's operations are focused in six key areas; plantation, heavy industries, property, finance & investment, trading & industrial and pharmaceutical. As at 31 December 2014, Boustead Holdings Berhad’s paid-up capital was RM517 million while its shareholders’ funds stood at RM5.9 billion. Market capitalisation is currently in excess of RM4.3 billion.
Forward looking statements
This release may contain certain forward-looking statements with respect to the financial conditions, results of operations and business of the Group and certain plans and objectives of Boustead Holdings Berhad with respect to these items. By their nature, forward-looking statements involve risk and uncertainty because they relate to events and depend on circumstances that will occur in the future and there are many factors that could cause actual results and developments to differ materially from those expressed or implied by these forward-looking statements.
on behalf of: Boustead Holdings Berhad
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