KUALA LUMPUR: EP Manufacturing Bhd (EPMB) has proposed to place out 30 per cent of its shares to raise RM39.65 million to partially fund the construction of the first phase of its manufacturing hub in Melaka.
In a filing with Bursa Malaysia Securities, the company said 15 per cent of the issued shares or 32.04 million shares will be allotted to Mutual Concept Sdn Bhd while the remaining half of the shares will be placed out to Bermaz Auto Bhd's subsidiary, Bermaz Capital Sdn Bhd.
The company said it entered into a conditional share subscription agreement with both companies for the proposed placement that involved a total of 66.08 million shares at 60 sen apiece.
Mutual Concept is a private company owned by EPMB's executive chairman, founde r and major shareholder Hamidon Abdullah.
EPMB said the Melaka manufacturing hub is intended to streamline the assembly and manufacturing process and optimise supply chain management. This is expected to reduce costs for EPMB and its customers.
"By entering into the vehicle assembly market, EPMB Group will be able to differentiate itself from its competitors and potentially capture a larger share of the market, especially as the automotive industry transitions towards electrification," it said.