Southern Cable Proposes 1 For2 Bonus Issue of Warrants

Southern Cable Group Berhad has indicated the intention to undertake a proposed bonus issue of warrants, on the basis of one warrant for every two existing ordinary shares held in Southern Cable.

The proposal entails the issuance of 400 million five-year warrants, with an option for holders to exercise one warrant into one new ordinary share of Southern Cable.

At the indicative exercise price of RM0.2942 per warrant and assuming full exercise of the warrants, the Group expects to raise up to RM117.7 million in gross proceeds to be utilised as working capital requirements. Its share capital would increase up to RM335.3 million from RM217.7 million previously.

 The proposed issuance is based on the company’s requirement to buff up its resources for the optimistic outlook it views in the near term. The working capital is also aid in fulfilling its total orders in hand exceeding RM800 million, which includes the recently-secured RM294 million supply contract from Tenaga Nasional Berhad.

The corporate exercise is subject to shareholders’ approval during an extraordinary general meeting to be convened, following which the entitlement date of the warrants and its actual exercise price would be determined at a later date

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