BAssets proposes 1-for-2 warrants bonus issue

PETALING JAYA: Berjaya Assets Bhd (BAssets) proposes to undertake a bonus issue of warrants on the basis of one warrant for every two shares held.

The group told Bursa Malaysia the bonus issue entails the issuance of up to 1.28 billion warrants.

The exercise price of the warrants has been fixed at 35 sen per warrant, which represents a discount of about 12.5% to the theoretical ex-bonus price of BAssets shares of about 40 sen, based on its five-day volume weighted average market price of 42 sen.

Assuming all the 1.28 billion warrants are exercised at the exercise price, the group is expected to raise gross proceeds of about RM447.7 million from the proposed bonus issue, which will be used for its working capital.

BAssets said the proposed bonus issue aims to reward and provide the entitled shareholders with an option to further increase their equity participation in the company at a pre-determined exercise price during the tenure of the warrants and to benefit from the future growth of the group as well as any potential capital appreciation in its shares.

“The proposed bonus issue will also strengthen the capital base of the company and potentially provide additional funds to the BAssets group as and when the warrants are exercised.”

Barring any unforeseen circumstances, the proposed bonus issue is expected to be completed by the second quarter of 2018.