The wrap-up of last week saw some noteworthy dealmaking in Malaysia, with BHS Industries Bhd, having received shareholders’ approval to raise MYR44.8 million ($11.2 million) through rights issue, even as the property market saw SKB buying land and Mah Sing cancelling an acquisition.
BHS to raise $11.2m for paper pulp production business
BHS Industries Bhd, having received shareholders’ approval to raise MYR44.8 million ($11.2 million) through rights issue, will look into producing paper pulp from oil palm wastes as part of plans to diversify from its core printing business.
The group received shareholders’ approval to raise that amount through a rights issue of up to 106.67 million new shares at an issue price of MYR0.42 per share, in order to raise funds for this new activity.
The proposed rights issue with warrants, is on the basis of one rights share with two warrants at the exercise price of MYR0.60 per warrant for every three BHS shares held.
BHS executive director Khoo Tiam Yoong said proceeds from the rights issue will be utilised to set up a plant to manufacture renewable paper pulp products through the use of empty fruit bunches.
SKB acquires Selangor land for $13.7m
In a filing with Bursa Malaysia, SKB Shutters said its wholly-owned unit SKB Shutters Manufacturing Sdn Bhd has accepted an offer by PKNS for the proposed land acquisition.
Pursuant to the offer from PKNS, SKB Shutters Manufacturing has paid 20 per cent, or MYR10.98 million, of the offer price being the refundable deposit sum and part payment for the proposed land acquisition, subject to execution of the sale and purchase agreement (SPA).
SKB Shutters Manufacturing has been occupying the factory building located on the piece of land to carry on its business activities, that is, manufacture and sale of roller shutters, racking systems, storage system and related steel products since 2002 under a 30-year lease agreement with PKNS.
Mah Sing cancels acquisition plans for a freehold land
Mah Sing Group Bhd has aborted the purchase of a prime freehold tract in Seremban measuring 1,051.3 acres for MYR359.56 million, due to a breach of terms in the sale and purchase agreement (SPA) by the vendors.
Its wholly-owned unit Grand Prestige Development Sdn Bhd, which was to undertake the acquisition, sent a letter through its solicitors today, to the vendors informing them that the SPA is void and/or rescinded, a filing to the local bourse noted.
“The SPA is void and/or rescinded, due to, amongst others, misrepresentation and/or the breach of terms and conditions of the SPA by the vendors and/or events that are unlawful have occurred,” Mah Sing said.
“The board is of the opinion that the rescission of the proposed acquisition is in the best interests of Mah Sing and its shareholders,” it said.
On August 5, seven individuals had initiated a legal suit against Grand Prestige over the proposed acquisition.