KUCHING: Sarawak Consolidated Industries Bhd (SCIB) has fixed the second tranche of its private placement at RM0.3031 per placement share.
he issue price represents a discount of approximately 9.98 per cent to the 5-day volume weighted average market price of SCIB shares for the last five market days up to and including June 14, 2023 of RM0.3367 per share, SCIB said in a filing with Bursa Malaysia.
SCIB shares’ price, which closed at 42sen each on June 15, 2023, has been on an uptrend with strong volumes in the past two weeks.
The private placement entails the issuance of up to 10 per cent or 82.72 million new ordinary shares.
Based on an earlier indicative issue price of RM0.1327 per placement share, the fund raising exercise could raise up to RM10.98 million.
Under the first tranche, SCIB placed out 25 million ordinary shares at RM0.1078 each in April 2023.
SCIB, which is principally involved in the manufacturing and sales of precast concrete products and industrialised building system (IBS) components, plans to utilise the proceeds to par down bank borrowings and for working capital requirements.
Meanwhile, Minetech Resources Bhd has proposed to acquire the remaining 15 per cent equity interest in Minetech Asphalt Man International Sdn Bhd (MAMI) for RM3.55 million.
The company has entered into a shares sale agreement with Shia Fui Kin to acquire 720,000 ordinary shares (15 per cent) in MAMI.
On completion of the deal, MAMI will become a wholly-owned subsidiary of Minetech.
In financial period ended March 31, 2023, MAMI posted after-tax profit of RM1.26 million on revenue of RM31.7 million. Its net assets stand at RM8.17 million.
“The purchase consideration was arrived based on negotiations and mutual agreement between both parties after taking into consideration of MAMI’s unaudited net tangible assets of RM8,167,959 as of 31 March 2023 and future earnings projections.
“The purchase consideration will be funded through internally generated funds,” Minetech told Bursa Malaysia.
Minetech said the acquisition represents a strategic opportunity for the company to recognise the entire profit from MAMI in the group’s financial statements, given the high demand of the products sold by MAMI.
“The acquisition is expected to contribute positively to the future financial position of Minetech Group,” it added.
