Priceworth International, a Malaysia-based investment holding company, is acquiring the entire stake in Rumpun Capaian Sdn Bhd for RM260 million.
Additionally, as part of the funding exercise for the acquisition, Priceworth is looking to float wholly owned subsidiary GSR Pte Ltd on the Singapore exchange.
According to Priceworth in a filing with Bursa Malaysia (formerly known as Kuala Lumpur Stock Exchange), the acquisition allows the company to access a significant 100-year concession of 101,161ha of forest management unit in Trus Madi, Sabah, known as FMU5 with timber-harvesting and replanting rights.
In addition, the company has also embarked in a log extraction and timber sale agreement with Rumpun’s 99.99%-owned subsidiary Anika Desiran Sdn Bhd. The move allows Priceworth to extract and remove at the contractor’s own cost, all commercial logs, and/or merchantable timber within the area.
Priceworth also proposes the acquisition of Sinora by GSR at net asset value.
In fact, other funding plans include a private placement of up to 10% of existing issued and paid-up capital, special issue of 141.25 million shares, renounceable two-call two-for-one rights issue of up to 1.69 billion new shares with one bonus share for every two rights shares subscribed.
The stock shot up 4% or half a sen in yesterday’s morning session of trading prior to its suspension pending the announcement the day before. The stock closed 13 sen, with 9.94 million shares changing hands.
Source: The Sun Daily