SP Setia plans rights issue to raise up to RM1.07 billion


SP Setia plans rights issue to raise up to RM1.07 billion

PETALING JAYA, 6 June: SP Setia Bhd is planning a rights issue of up to 1.07 billion new Islamic Redeemable Convertible Preference Shares (RCPS-i) to raise up to RM1.07 billion for working capital and future projects.

In a stock exchange filing last Friday, it said it will use up to 72% of the proceeds, or RM768.1 million for future property development and expansion plans.

SP Setia will use RM300 million of the proceeds for existing projects in Selangor, Kuala Lumpur and Penang, namely Setia Ecohill 2, Setia Eco Templer, Setia Sky Seputeh, Setia Trio, Setia Sky Vista, and Setia Sky Ville.

The proposed rights issue is expected to be completed in the fourth quarter of 2016 and is not expected to have any material effect on its FY16 earnings.

SP Setia said the issue price is RM1 per RCPS-i on the basis of two RCPS-i for every five existing ordinary shares of 75 sen each. The entitlement date will be announced later.

Permodalan Nasional Bhd, which held 1.34 billion shares representing 51.04% of the issued and paid-up share capital of the company, has provided its written irrevocable undertaking to subscribe its entitlement in full. The undertaking will not trigger any mandatory takeover obligation for remaining shares.

The group also seeks to increase in authorised share capital and amend memorandum and articles of association to accommodate and facilitate the issuance of the RCPS-i and new SP Setia shares.



Sign up and stay updated
Get the latest property news, home solution tips, interior design ideas and property guides.
By subscribing, you consent to receive direct marketing from iProperty.com Malaysia Sdn Bhd (iProperty), its group of companies and partners. You also accept iProperty’s Terms of Use and Privacy Policy including its collection, use, disclosure, processing, storage and handling of your personal information.