Seacera explains premium to price of new shares

PETALING JAYA: Seacera Group Bhd has clarified that the premium to the price of its new shares that will be issued in an acquisition exercise is based on a willing buyer-willing seller negotiation.

In justifying the 26.58% premium to arrive at the issue price of RM1 per consideration share, the tile manufacturer and property and construction group said yesterday the agreed price also took into consideration the volume weighted average market prices (VWAMPs) of its shares, as well as the net assets per share of the company.

“The issue price and correspondingly the premium has been agreed by Seacera and the vendors after negotiation between the parties on a willing buyer-willing seller basis,” the company said in its response to a query letter from Bursa Securities.

“For clarity, in addition to the five-day VWAMP, the board also has taken into consideration the following in negotiating and arriving at the issue price of RM1 per consideration share - the premium and discount to its one-month, threemonth, six-month and one-year VWAMPs up to and including the market day preceding to the announcement (of its acquisition exercise) and the unaudited net asset of Seacera as at Sept 30, 2017 of RM1.96 per share,” it added.

Seacera’s shares fell one sen to close at 77 sen yesterday.

Seacera on Feb 27 announced that it would issue 35 million new ordinary shares at an issue price of RM1 to finance its proposed acquisition of a 70% stake in construction outfit Teras Sari Resources Sdn Bhd (TSRSB) for RM35mil from LT Century Development Sdn Bhd and LTC Holdings Sdn Bhd.

Seacera said the proposed acquisition of TSRSB, which won a RM338.14mil contract to upgrade roads in Pekan, Pahang, last month, was in line with its internal target of securing a RM1bil order book to keep it busy for the next three to five years.