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KUALA LUMPUR (December 8): Serba Dinamik Holdings Bhd seeks to raise around RM515.35 million from its private placement to pay off bank loans and partially finance its projects.
In a stock exchange presentation, the group said it would issue up to 336.83 million new shares, representing 10% of its issued share capital of 3.37 billion shares as of November 30.
Estimated earnings of RM515.35 million are based on an illustrative issue price of RM1.35 per share. Of this amount, RM 100 million will be used to partially repay RM 626.99 million loans.
Meanwhile, another RM 100 million would be used for capital expenditures. Specifically, it would be used for the group’s Teluk Ramunia Yard shipyard in Johor, which will involve the construction of the building’s facilities, the purchase of machinery and heavy equipment and any unforeseen expenses.
The capital expenditure deployed is necessary to restore Teluk Ramunia Yard’s 50,000 ton operating capacity and to improve the safety and integrity of the facility’s infrastructure.
Serba Dinamik will also use RM303.46 million for projects in Abu Dhabi. Approximately 55% of the RM303.46 million would be used for the construction of an innovation center, academic campus, related facilities and information technology infrastructure in Abu Dhabi, while the remainder would be used for the construction of a center for data and its related facilities, infrastructure and landscaping in the emirate, as well as working capital.
Serba Dinamik said that its managing director and CEO Datuk Dr. Mohd Abdul Karim Abdullah, who is also the group’s largest shareholder, can participate in the book-making exercise for the placement.
As such, an extraordinary general meeting (EGM) will be held for the placement of 101.05 million shares to Abdul Karim, which will be part of the private placement.
Abdul Karim, together with directors Datuk Abdul Kadier Sahib and Datuk Awang Daud Awang Putera, are parties interested in the placement of shares in Abdul Karim. They will abstain from voting on the matter at board meetings and at the General Shareholders’ Meeting.
The group said that Abdul Karim’s share cannot exceed 32.9%, or that the collective participation of Abdul Karim, Abdul Kadier and Awang Daud cannot increase by more than 2% in the six months after the completion of the placement, in case its shareholders exceed 33% before the placement of shares to Abdul Karim.
“This is to ensure that Dato ‘Karim and / or persons related to him do not trigger the mandatory takeover bid obligation under the Mandatory Acquisitions, Mergers and Acquisitions Rules, read in conjunction with the Malaysian Acquisitions and Mergers Code 2016 issued by the Malaysian Securities Commission, upon completion of the proposed private placement, ”the group added.
Serba Dinamik’s share price ended 2.05% or four sen below RM1.91 today, valuing the group at RM6.48 billion.
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