PWI increases size of proposed special issue

KUALA LUMPUR: Priceworth International Bhd (PWI) has increased the size of its proposed special issue, which it plans to allot to RHB Banking Group founder Tan Sri Abdul Rashid Hussain, his spouse and bumiputra firm Maha Gayabina Sdn Bhd.

In a filing with Bursa Malaysia, the logging and wood product manufacturing firm said it had inked a conditional agreement with the three subscribers to issue and allot up to 215.64 million new PWI shares at 10 sen each.

Abdul Rashid will subscribe to shares representing up to 6.4% of PWI’s paid-up capital as at the last practicable date, Puan Sri Emilahani Yang Mohd Yatim will subscribe to up to 3.6% and Maha Gayabina up to 20%.

In the original proposal, the proposed special issue involved the issuance of up to only 141.25 million shares representing about 20% of PWI’s enlarged paid-up capital. However, the company now also wants to include its existing treasury shares of 12.56 million, which will boost the special issue size to 30% of the enlarged capital (excluding treasury shares).

“The increase in the number of the special issue shares is to facilitate the equity participation of bumiputra shareholders in PWI as well as to raise additional funding to meet the working capital requirements for the development of the FMU5 (Forest Management Unit 5),” PWI said.

The special issue is part of a larger corporate exercise that involves, among others, PWI’s unit GSR Pte Ltd acquiring timber extraction and replanting rights on the 101,161ha Trus Madi forest reserve in Sarawak (also known as FMU5) by buying the concession holder for RM260mil.

The sustainable forest management licence has a period that ends in September 2097.

The RM260mil consideration will be funded from the proposed special issue as well as a proposed private placement, proceeds arising from the listing of GSR Pte Ltd on the Singapore Exchange Securities Trading Ltd, cash from internally generated funds and/or bank borrowings.