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Malaysian Resources Corporation Berhad (MRCB) held an Extraordinary General meeting (EGM) on 21 December 2009 at Putra World Trade Centre, Kuala Lumpur with more than 600 shareholders thronging the meeting.
En. Mohamed Razeek Hussain, MRCB Chief executive Officer (CEO) conducted the presentation and shared with the shareholders on the proposed RM541million fund-raising exercise via a rights issue. He also shared with them the plans on the purpose of the funds and on the use of most of the proceeds.
En. Mohamed Razeek stated that “it would invest in land for further commercial and residential developments. The funds raised were purely for healthy business expansion and not to clear bank borrowings.
“The rights issue is expected to increase MRCB’s capital from 907.63 million shares currently to between 1.36 billion and 1.44 billion shares.
“Based on our audited accounts as at December 31, 2008, MRCB’s gearing level would decline from 2.5 times to between 1.4 times and 1.2 times following the completion of the rights,” he added.
The EGM went smoothly, with many questions raised by interested shareholders on MRCB’s business performance and direction. Happy with the explanation, MRCB shareholders approved a 1-for-2 rights issue at RM1.12 a share to raise RM508mil to RM541mil. This represents a discount of about 13.2% from the thereotical ex-rights price of the five-day volume-weighted average market price prior to the price-fixing date on 19 November 2009.
Most of the shareholders were more than happy to see the progress of MRCB. After the briefing session, the Board of Directors and staff socialized with the shareholders.
Shareholders, bankers, auditors and invited guests were served refreshments after the session.
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