Shareholders of Southern Score Builders Berhad have approved the proposed variation and extension of timeframe for utilisation of proceeds raised from the private placement completed in November 2022 at the extraordinary general meeting held earlier today.
The Group raised RM108.6 million from the exercise then and currently has RM46 million unutilised as at end-February 2024.
Of the RM46 million, RM21.8 million is now reallocated for potential acquisitions with the remainder redeployed for purchase of building materials, repayment of contractors and working capital. The previous intended utilisations were for investment into an associate company as well as for the acquisition of construction assets and office space.
Executive Director and Chief Executive Officer of Southern Score, Mr. Gan Yee Hin said, “The Group is eyeing acquisitions that are largely complementary to our existing business, specifically within the field of mechanical and electrical construction. This is in line with our strategy to expand our construction services. We are in active discussion with some potential targets. Hence, the reallocated RM21.8 million and our solid balance sheet position us to capitalise on these prospects.”
As for timeframe, the Group has between 18 months and 24 months from the date of EGM to utilise the funds for the approved purposes.
Separately, the Group had in April 2024 declared an interim dividend of 1.0 sen per share for the financial year ending 30 June 2024 (“FY24”).
