WCT Bhd has proposed to issue RM600 million serial fixed rate bonds of up to five years with up to 181.085 million detachable warrants on a “bought deal” basis to primary subscribers.
In a filing with Bursa Malaysia yesterday, WCT said the provisional rights to allotment of the warrants would be detached from the bonds, and the primary subscribers would undertake a placement of the entire RM600 million bonds — without the warrants — to secondary subscribers.
It said the primary subscribers will then undertake an offer for sale of the provisional rights of allotment to the 181.085 million detached warrants, comprising up to to 121.09 million units to WCT shareholders on a renounceable basis of one warrant for every eight existing shares and 60 million units to entitled senior management of the group.
WCT said of the initial RM600 million gross proceeds, RM350 million would be for repayment of existing borrowings, RM247.3 million for working capital and general funding requirements and the balance of RM2.7 million to defray expenses related to the proposals.
This article appeared in The Edge Financial Daily, July 29, 2010.
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