KUALA LUMPUR (Feb 10): LONDON BISCUITS BHD [] (LonBisc) has proposed to place out 29.37 million new shares at an indicative issue price of RM1 per share to raise up to RM29.37 million, of which about 50% would be used to repay its borrowings.
LonBisc said on Friday the placement shares would represent up to 24.35% of its paid-up share capital and would be placed out to investors to be identified later.
Due to the size of the private placement, it would be implemented in several tranches within six months from the date of approval from Bursa Malaysia Securities Bhd.
LonBisc said the issue price would not be lower than the par value of the company’s share. As the five-day weighted average market price (WAMP) of the shares up to Feb 9 was 79 sen, the minimum issue price would be RM1, or 26.58% premium to the five-day WAMP up to Feb 9.
“The company proposes to utilise RM15 million of the gross proceeds from the proposed private placement for the repayment of the LonBisc group’s short term borrowings, including but not limited to, bank overdrafts, bankers’ acceptance, hire purchase and term loans which are due within the next 12 months,” it said.
It added the amount of annual savings in interest payments would be about RM900,000 per annum.
LonBisc said the other RM13.97 million would be used as working capital and the remaining RM400,000 as estimated expenses related to proposed private placement.
LonBisc said on Friday the placement shares would represent up to 24.35% of its paid-up share capital and would be placed out to investors to be identified later.
Due to the size of the private placement, it would be implemented in several tranches within six months from the date of approval from Bursa Malaysia Securities Bhd.
LonBisc said the issue price would not be lower than the par value of the company’s share. As the five-day weighted average market price (WAMP) of the shares up to Feb 9 was 79 sen, the minimum issue price would be RM1, or 26.58% premium to the five-day WAMP up to Feb 9.
“The company proposes to utilise RM15 million of the gross proceeds from the proposed private placement for the repayment of the LonBisc group’s short term borrowings, including but not limited to, bank overdrafts, bankers’ acceptance, hire purchase and term loans which are due within the next 12 months,” it said.
It added the amount of annual savings in interest payments would be about RM900,000 per annum.
LonBisc said the other RM13.97 million would be used as working capital and the remaining RM400,000 as estimated expenses related to proposed private placement.
