KUALA LUMPUR (Aug 21): Country Heights Holdings Bhd (CHHB) said yesterday the property developer proposes to undertake a private placement of up to 54.71 million new shares which represent about 20% of the company's existing number of issued shares to raise an indicative RM58.81 million.
The money will partially finance the construction cost for the group’s Mines Wellness Suites office project and College Heights Estate retail and industrial real estate development.
In a filing with Bursa Malaysia yesterday, CHHB said the RM58.81 million private placement will also be used to, among others, repay CHHB’s bank borrowings and finance the development cost of CHHB’s mobile application known as the M Smart City App (MSA).
"There is no fund-raising exercise undertaken by CHHB during the past 12 months immediately preceding the date of this announcement,” CHHB said.
According to CHHB, the RM179.9 million Mines Wellness Suites project is a 12-storey development which consists of 268 units of office suites in Seri Kembangan, Selangor.
Meanwhile, the College Heights Estate project in Pajam, Negeri Sembilan will comprise 28 shop lots and 60 factory lots, according to CHHB.
CHHB said the 28 shop lots have a gross development value (GDV) of RM19.3 million while the 60 factory lots have a GDV of RM65.3 million.
"In line with our group’s plan to transform Mines Wellness City into a township in Malaysia to use smart city mobile application, our group intends to develop the MSA which will be equipped with features such as integrated digital services, community engagement, smart city management and others.
"The repayment priority of the bank borrowings has not been determined at this juncture and will depend on the relative cost of borrowing at the time of repayment decision,” CHHB said.
CHHB said the proposed private placement entails the issuance of up to 54.71 million new shares representing approximately 20% of the company’s total number of issued shares at 273.56 million.
For illustrative purposes in this announcement, CHHB said the company assumes the placement shares are issued at an indicative RM1.075 each to raise RM58.81 million.
CHHB said the placement shares will be issued to independent investors and that the corporate exercise may be implemented in a single or multiple tranches.
"Barring unforeseen circumstances, the application to Bursa in relation to the proposed private placement is expected to be made within two months from the date of this announcement. Subject to the relevant approvals being obtained and barring any unforeseen circumstances, the proposed private placement is expected to be completed by the fourth quarter of 2021,” CHHB said.
M&A Securities Sdn Bhd has been appointed as the adviser and placement agent for private placement of new shares, CHHB said.
At 5pm yesterday, CHHB’s share price closed unchanged at RM1.19 for a market value of about RM325.54 million.
CHHB’s latest-reported net assets per share stood at RM2.86.
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