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BNM gives go ahead for SHB to issue warrants

KUALA LUMPUR: Bank Negara Malaysia (BNM) has given the green light for property and construction outfit Seloga Holdings Bhd (SHB) to issue warrants under its proposed rights issue to entitled shareholder of the group, who may be non-residents.

The company said on Tuesday, June 27, that the central bank had given the nod in a letter dated July 23, which it had received today.

The warrants are part of a revised rights issue under Seloga’s regularisation plan, which it had announced in March 2009.

The rights issue was revised following its return to profitability in the financial year ended Dec 31, 2009, where it had posted a profit after tax of RM13.48 million versus a loss after tax of RM3.5 million a year ago.

The proposed rights issue was revised to a renounceable rights issue of up to 49.12 million new ordinary shares of 25 sen each in SHB, together with 73.65 million free detachable warrants at a proposed issue price of 25 sen per rights share on the basis of two rights share, with three free warrants for every five ordinary shares in SHB held after its proposed capital restructuring.

In prior announcements, the group aimed to raise up to RM12.28 million, with up to RM10.78 million from the proceeds to be used as working capital, while the remainder will be used to defray estimated expenses related to the proposed rights issue.

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