Sunway shareholders say aye to RM1.1b ICPS issue

KUALA LUMPUR (Sept 3): Sunway Bhd’s shareholders have consented to the group’s proposed rights issue of 1.11 billion irredeemable convertible preference shares (ICPS) to raise RM1.1 billion.

In a bourse filing yesterday, the diversified conglomerate announced that 99.99% of shareholders who had attended its virtual extraordinary general meeting had voted in favour of allowing the cash call.

Sunway will be raising RM1.1 billion via the issuance of 1.11 billion ICPS at RM1 per share to pare down its borrowings, and to fund hospital expansion and property development expenditure.

The ICPS rights issue is on the basis of one ICPS for every five existing ordinary shares held.

These ICPS will have a tenure of five years, and can be converted for RM1 per share four years after the issue date.

In particular, as much as RM732.5 million will be used to repay Sunway's debts, while RM200 million will be used for its hospital expansion and RM179.2 million will be used for its property plans.

The cash call is expected to yield an interest saving of RM22.4 million to RM27.4 million based on the average annual interest rate of 3.74%.

Sunway shares closed unchanged yesterday at RM1.43, valuing the group at some RM7.06 billion. It saw 1.84 million shares traded.

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