KUALA LUMPUR: Pansar Bhd is one step closer in realising its business diversification plans to include construction and civil engineering.
Pansar announced today its price-fixing and implementation timeline for its rights issue exercise, which the company is raising approximately RM121 million to part-fund the group's acquisition of Perbena Emas Sdn Bhd (PESB).
The entitlement date for the rights issue has been fixed for March 8, 2021.
Pansar said the renounceable rights issue involves the issuance of new redeemable convertible preference shares (RCPS) on the basis of one RCPS for every two existing shares held in Pansar.
Pansar also fixed the issue price for the rights issue at 53 sen per RCPS, representing a discount of approximately 23.19 per cent to the theoretical ex-rights price of Pansar shares of 69 sen, calculated based on the five-day volume-weighted average price (VWAP) of Pansar shares up to and including February 19, 2021 of 77 sen.
Pansar said the RCPS will carry a dividend rate of four per cent per annum based on the issue price, and each RCPS will be convertible into one new Pansar share after the third anniversary of issuance.
This represents an implied conversion price of 53 sen per RCPS or a conversion ratio of one RCPS for one new Pansar share.
Pansar's share closed at 77.5 sen today.
In addition, Pansar announced that it had entered into an underwriting agreement with UOB Kay Hian Securities (M) Sdn Bhd, for the underwriting of up to 78.58 million RCPS representing approximately 34.26 per cent of the total RCPS to be issued.
Pansar's major shareholder, Pan Sarawak Holdings Sdn Bhd, had also provided its undertaking to subscribe for its entitlement under the rights issue, totalling 150.75 million RCPS.
Pansar, a Sarawak-based company, is primarily involved in providing engineered solutions for customers in the building and construction, marine and industrial, heavy equipment, agricultural, and electrical and office automation industries.
Pansar also engineers and constructs air conditioning and ventilation, water treatment, and fire protection systems.
The group had on September last year entered into a conditional share purchase agreement with PE Holdings Sdn Bhd to acquire 100 per cent equity interest in the issued share capital of PESB for RM151 million.
The company had later received the shareholders approval for the proposed acquisition on December 22 through an extraordinary general meeting.