Trive Property proposes private placement to raise RM60.5 mil for Terengganu housing project

KUALA LUMPUR (June 7): Trive Property Group Bhd has proposed an issuance of up to 500 million new shares to Australian bank Macquarie Bank Ltd to raise up to RM60.5 million to fund a residential development project in Kertih, Terengganu.

Upon completion of the exercise, Macquarie Bank will emerge as the biggest shareholder in Trive Property, holding a stake of between 25.9% and 27.2%. However, the bank does not intend to be a controlling shareholder, said Trive Property.

Under a conditional subscription agreement inked with Macquarie Bank, Trive Property said the issuance will be made in multiple tranches within two years from the date of the issuance, which will be determined later.

The shares will be priced at 90% of the Trive Property’s five-day daily volume-weighted average price (VWAP) in the five consecutive trading days immediately preceding the date of the issuance, added Trive Property.

“The method for determining the subscription price was agreed on a negotiated basis between the company and Macquarie Bank,” the company said in a filing with Bursa Malaysia.

Trive Property will use RM60 million of the proceeds to fund the remaining works for Phase 1 of the Kertih project, which has a gross development value (GDV) of RM123 million.

Phase 1, said the developer, will comprise 211 units of double-storey terraced house and 68 units of single-storey semi-detached house.

Shares of Trive Property closed half a sen or 3.85% lower at 12.5 sen today, giving the group a market capitalisation of RM173.76 million. — theedgemarkets.com

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