ELK-Desa to raise RM59.84m through rights is­sue

The Sun (Malaysia) - - SUNBIZ -

PETALING JAYA: ELK-Desa Re­sources Bhd pro­poses to un­der­take a re­nounce­able rights is­sue ex­er­cise to raise up to RM59.84 mil­lion.

In a fil­ing with the stock ex­change, the com­pany said the pro­posed rights is­sue en­tails an is­suance of up to 51.59 mil­lion rights shares on the ba­sis of one rights share for ev­ery five ex­ist­ing shares held, with an is­sue price of RM1.16 per rights share.

Pro­ceeds raised will be used for the pur­pose of the hire pur­chase dis­burse­ments of its wholly owned sub­sidiary ELK-Desa Cap­i­tal Sdn Bhd.

ELK Desa has pro­cured ir­rev­o­ca­ble writ­ten un­der­tak­ings from chair­man Teoh Hock Chai @ Tew Hock Chai, Eng Lee Kredit Sdn Bhd and ELK Group Sdn Bhd to sub­scribe in full their re­spec­tive en­ti­tle­ments un­der their di­rect share­hold­ings in ELK-Desa and sub­scribe by ways of ex­cess rights shares ap­pli­ca­tion for all the re­main­ing rights shares.

In view of the ir­rev­o­ca­ble un­der­tak­ings, their col­lec­tive share­hold­ings may in­crease to more than 33%, hence an ex­emp­tion will be sought from un­der­tak­ing a manda­tory take over of­fer.

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