Shares in timber and forest plantation group Priceworth International Bhd will trade ex-rights on 18 July, for its RM102.37 million renounceable two-for-one rights issues with bonus shares, the company said in announcing the book closure for the rights issue.

The provisional allotment of rights entitlements will begin trading on 23 July and cease trading on 30 July. The last day for the sale of the rights allotments will be 27 July.

The last day and time for acceptance and payment of the rights will be on 6 Aug, with the rights shares to be listed on Bursa Malaysia on 20 Aug. Every two rights shares will be entitled to a bonus share.

The issue price for the rights shares was earlier fixed at 5 sen each. Based on the current market price of 23 sen, the theoretical ex-right price will be at about 8 sen which means the issue price is at a discount of about 37 percent to the theoretical ex right price.

At this issue price, Priceworth expects to raise a minimum of RM102 million, which will go towards reducing debt ahead of its proposed acquisition of Forest Management Unit 5 (FMU5).

The rights issue has been fully underwritten by Am Investment Bank Bhd, RHB Investment Bank Bhd, Mercury Securities Sdn Bhd, MIDF Amanah Investment Bhd and Kenanga Investment Bank Bhd. Priceworth’s substantial shareholders have also provided their undertaking to subscribe to their portion of the rights issue.

Shareholders in May approved the plan to pay RM260 million for FMU5, which is a sustainable forest management concession in Sabah, which has been valued at RM433.8 million by an Independent Firm of Valuers. Priceworth also holds a cash option which if exercised would reduce the acquisition price to RM235 million.

Twitter