KUCHING: Sarawak-based engineering solutions provider, Pansar Berhad (Pansar), is one step closer to realising its business diversification plans to include construction and civil engineering.
Pansar announced yesterday its price-fixing and implementation timeline for its rights issue exercise, which shall see the company raising approximately RM121 million to part-fund the Group’s acquisition of Perbena Emas Sdn Bhd (PESB).
A filing with Bursa Malaysia showed that the Entitlement Date for the Rights Issue has been fixed for March 8, 2021. 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 RM0.53 per RCPS, representing a discount of approximately 23.19 per cent to the theoretical ex-rights price of Pansar Shares of RM0.69 calculated based on the five-day VWAP of Pansar Shares up to and including February 19, 2021 of RM0.77.
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 RM0.53 per RCPS or a conversion ratio of one RCPS for one new Pansar share.
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 78,575,974 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 150,750,001 RCPS. Pan Sarawak’s undertaking reflects its commitment and confidence in growing the group’s business and their support in undertaking the Acquisition.
According to Pansar’s announcement on important relevant dates, the opening of applications for the Rights Issue is expected to commence on March 9, 2021, with the last date for acceptance and excess share application expected on March 23, 2021.
Pansar 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 announced that it 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 a purchase consideration of RM151 million.
The company had later received the shareholders approval for the proposed acquisition on December 22 through an extraordinary general meeting.