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E&O to raise RM250 million via private placement and rights issue

Last update: 11/02/2019
KUALA LUMPUR, Feb 11 (Bernama) -- Eastern & Oriental Bhd (E&O) has proposed to raise RM250 million and RM550.3 million via a private placement of new ordinary stocks and a renounceable rights issue with warrants.

The property developer said the proceeds were expected to be utilised for repayment of borrowings, property development and/or reclamation, general working capital and estimated expenses for the proposed fundraising.

As at Sept 30, 2018, the group had loans and borrowings amounting to RM1.48 billion and upon partial repayment of the borrowings, the group expected to enjoy interest savings of between RM7.8 million and RM10.5 million per annum based on an average interest rate of 5.23 per cent per annum.

“This assumes the partial repayment under the minimum and maximum scenario of RM150.0 million and RM200.0 million, respectively,” the group said in a filing with Bursa Malaysia.

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