THHE in private placement move

THHE in private placement move

Kuala Lumpur: Taking advantage of the significant interest in Malaysia’s oil and gas scene, TH Heavy Engineering (THHE) is undertaking a private placement of up to 10% of the issued and paid-up share capital of THHE to third party investors. The move could net gross proceeds of up to RM100m, the yard said in a statement to the local bourse in Kuala Lumpur.

The proposed private placement will entail the issuance of up to 125,810,570 new ordinary shares at RM0.25 each.

For the first tranche, Pelaburan MARA Berhad (PMB) has agreed to subscribe for 52,796,345 placement shares at the issue price of RM0.80 per placement share. PMB is a strategic investment and asset management company wholly-owned by Majlis Amanah Rakyat, a statutory agency of the government of Malaysia. PMB is principally involved in private equity investments, portfolio fund management, unit trust management, financial services and corporate advisory.

THHE said proceeds from the placement will be placed in an interest bearing deposit account with financial institutions or investments in money market instruments.

“The Proposed Private Placement provides an opportunity for THHE to tap into the equity capital market to raise funds and take advantage of the current robust demand from investors to participate in the growth prospects of the oil and gas sector in Malaysia,” the yard said in a release.

The placement will enable THHE to raise funds without incurring interest cost compared to bank borrowings, the yard added.  [26/09/14]