KUALA LUMPUR (Nov 6): Eastland Equity Bhd plans to undertake a renounceable rights issue of up to 294.8 million new shares to raise funds, which will finance the property developer's proposed land buy and repay bank borrowings. 

In a statement to Bursa Malaysia today, Eastland said the rights issue includes a free warrant issue of up to 147.4 million units.

It added that the rights issue is undertaken on the basis of six rights shares for every five existing Eastland shares held, and one warrant for every two rights shares.

Eastland said the rights issue "enables the company to raise proceeds to fund the proposed acquisition and partially repay bank borrowings of Eastland Group, if there are excess funds".

Eastland said its wholly-owned subsidiary FBO Land (Setapak) Sdn Bhd had today signed a conditional sale and purchase agreement with PCK Properties Sdn Bhd to buy an estimated 0.22ha (2,181.80 sq m) leasehold land along Jalan Pantai, Kota Kinabalu, Sabah for RM23.27 million. 

"The proposed acquisition is in line with Eastland’s strategy to diversify its property development into new geographical areas," which already has an existing property project in Kelantan, Eastland added.

Eastland's share trade was suspended between 9am and 10am today, in conjunction with the announcement. On Friday, the stock closed at 17 sen. — theedgemarkets.com

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