Pansar one step closer to realising acquisition growth plans
KUALA LUMPUR: Sarawakbased engineering solutions provider, Pansar Berhad (Pansar), is one step closer to realising its business diversification plans to include construction and civil engineering.
Pansar announced yesterday its price-fixing and implementation timeline for its rights issue exercise, which shall see the company raising approximately RM121 million to part-fund the Group’s acquisition of Perbena Emas Sdn Bhd (PESB).
A filing with Bursa Malaysia showed that the Entitlement Date for the Rights Issue has been fixed for March 8, 2021. The renounceable rights issue involves the issuance of new redeemable convertible preference shares (RCPS) on the basis of one RCPS for every two existing shares held in Pansar.
Pansar also fixed the issue price for the Rights Issue at RM0.53 per RCPS, representing a discount of approximately 23.19 per cent to the theoretical exrights price of Pansar Shares of RM0.69 calculated based on the five-day VWAP of Pansar Shares up to and including February 19, 2021 of RM0.77.
The RCPS will carry a dividend rate of four per cent per annum based on the issue price, and each RCPS will be convertible into one new Pansar share a er the third anniversary of issuance. This represents an implied conversion price of RM0.53 per RCPS or a conversion ratio of one RCPS for one new Pansar share.
In addition, Pansar announced that it had entered into an underwriting agreement with UOB Kay Hian Securities (M) Sdn Bhd, for the underwriting of up to 78,575,974 RCPS representing approximately 34.26 per cent of the total RCPS to be issued.
Pansar’s major shareholder, Pan Sarawak Holdings Sdn Bhd, had also provided its undertaking to subscribe for its entitlement under the rights issue, totalling 150,750,001 RCPS. Pan Sarawak’s undertaking reflects its commitment and confidence in growing the group’s business and their support in undertaking the Acquisition.