Seacera to make cash calls

KUALA LUMPUR: Seacera Group Bhd is undertaking cash call exercises aimed at reducing its debts.

The exercises entail an issuance of 149.09 million new shares at 21 sen per share.

This is to settle a RM31.13 million debt owed by Seacera Group and subsidiaries Seacera Ceramics Sdn Bhd and Seacera Properties Sdn Bhd.

The group is also planning a private placement of up to 126.34 million shares, or about 30 per cent of its issued share capital, to third-party investors.

It is expected to raise RM24.64 million based on the share price of 21 sen on April 1.

Around 81 per cent, or RM20 million, will go towards repaying bank borrowings.

“In view of the weakening demand and stiff competition in the tiles industry arising from the slowdown of the property market and decline in the construction sector, this capitalisation via the issuance of settlement shares is the better option.

“The reduction of bank borrowings via private placement is expected to result in savings in interest payments of about RM1.24 million per year,” said group managing director Zulkarnin Ariffin.

He said Seacera Group remained optimistic about its prospects, driven mainly by its 202ha of undeveloped and unencumbered land in Semenyih, Selangor.

“With an estimated gross development value of RM10 billion, this will be the key revenue generator for the company.

“This is an ideal time to select a partner to develop the land,” it added.

The land, about 2km off the Kajang SILK Highway and 1.6km from the Sungai Long toll plaza, is within 30km of Kuala Lumpur City Centre.

It is surrounded by developments such as Eco Majestic by Eco World Bhd, South Ville by Mah Sing Group Bhd, Serene Heights by UEM Sunrise Bhd and Setia Eco Hill and Setia Eco Hill 2 by SP Setia Bhd.