Bison proposes private placement to raise up to RM78mil

KUALA LUMPUR: Bison Consolidated Bhd has proposed a private placement exercise to raise up to RM77.52mil, to be used mainly to buy industrial land with an office block in Petaling Jaya that will serve as its future corporate office.

The MyNEWS.com chain store operator said it planned to issue up to 31.01 million new shares, representing up to 10% of the total number of the company’s issued shares.

The issue price will be determined later, but in its announcement to Bursa Malaysia, Bison gave an indicative price of RM2.50 per placement share. (The counter closed at RM2.60 yesterday, down 2 sen.)

Of the estimated gross proceeds totalling up to RM77.52mil, Bison said it would set aside up to RM50mil to acquire a 17,869-sq-metre plot of land in Kota Damansara, where a single-storey warehouse with an annexed three-storey office block are located.

The company also intends to relocate its corporate office to the annexed office block.

It said its present corporate office at KIP Industrial Park in Kuala Lumpur was inadequate to support its enlarged staff force and operational requirements.

Of the remaining gross proceeds from the placement, up to RM24.39mil will be allocated for working capital.

Of this portion, Bison said, it had earmarked RM20.4mil for the construction, development and operations of a proposed food preparation and packaging facility in Rawang Industrial Park. It intends to supply ready-to-eat food to its outlets.