Country Heights plans RM1b fundraising

PETALING JAYA: Country Heights Holdings Bhd (CHHB) plans to raise RM1 billion either through direct borrowings, bond issuance or strategic partnerships to finance four project launches.

The property developer said in a statement yesterday that it has a very low financial gearing in comparison with its assets, with current loans standing at RM200 million against RM778 million in net tangible assets.

“Based on revalued net asset value together with a revaluation of our assets, the company would be worth over RM2.8 billion.”

In a filing with the stock exchange, CHHB announced its plan to undertake a bonus issue of warrants involving an issuance of up to 137.85 million warrants on the basis of one warrant for every two existing CHHB shares held. It noted that the exact quantum of the proceeds that may be raised will depend on the exercise price of the warrants and the actual number of warrants exercised during the five-year tenure. The proceeds will be used for working capital. The bonus issue of warrants will provide shareholders with the opportunity to increase their participation and to benefit from any potential capital appreciation of the warrants. Barring any unforeseen circumstances, it is expected to be completed by the fourth quarter this year. Speaking on the change in government, CHHB opined that the new government should aim to protect and propel new businesses in the next five years.

“New ideas from private sector should be protected but not hijacked. Similarly, the government should liberalise and not be overprotective of the banking and financial industries. Banks and financial companies should ideally operate as business entities with rules and regulations, thriving on their own merits. New banking licences should be considered,” it said.

CHHB held its AGM yesterday. Its executive chairman, Tan Sri Lee Kim Yew ( pix), was in the news last year after the Inland Revenue Board seized his personal accounts in relation to RM22.7 million of tax liabilities incurred by CHHB’s wholly owned subsidiary Country Heights Sdn Bhd for the 1997 and 1998 assessment years. Lee later settled the tax liabilities with his personal funds.

CHHB gained 14 sen or 11% to RM1.41 on volume of 114,500 shares yesterday.