TWL Holdings Bhd (formerly Tiger Synergy Bhd) has obtained almost 100% approval from its shareholders for its proposed renounceable rights issue at the company’s extraordinary general meeting (EGM) today.
The exercise entails up to RM111.3 mil nominal value of 5.6 billion 5% redeemable convertible unsecured loan stocks (RCULS) at 2 sen each together with up to 1.1 billion free detachable warrants in the company (Warrants E).
The free Warrants E is on the basis of 10 RCULS together with two free Warrants E for every 10 existing shares held by entitled shareholders on the entitlement date.
“The resounding approval from our shareholders will put us in a strong position to deliver our development projects for this year,” commented to TWL’s managing director Shirley Tan Lee Chin.
“We’re confident that we will be able to raise the necessary funds to undertake the development projects that are expected to contribute positively to the group’s future earnings.”
The fund raised from the proposed rights issue is expected to range from RM25 mil to RM111.3 mil.
According to the circular issued with regard to the proposed rights issue, the projects to be funded by the group are the development of 715 units of affordable housing under the Rumah Selangorku scheme to be undertaken on the EN10 Land, the development of 746 units of affordable housing under the Rumah Selangorku scheme to be undertaken on the EN11 Land and the development of 1,139 units of affordable housing under the Rumah Selangorku scheme to be undertaken on the HT4 Land.
The EN10, EN11 and HT4 projects together boast a gross development value (GDV) of RM171.7 mil, RM179.0 mil and RM273.3 mil respectively, thus bringing the total GDV of the projects to RM624 mil.
“The TWL group is committed to delivering affordable housing projects that target the local community with an intention to support the government initiatives under the revised Budget 2023 to build and provide affordable houses,” added Tan.
Under the revised Budget 2023, the government has recommended some initiatives, among others stamp duty waiver for first-time house buyers and government home financing, so that the local community can easily own a house.
Tan further shared that the shortfall in TWL’s funding requirements for the three projects is expected to be met via internally generated funds and bank borrowings.
At the close of today’s trading, TWL was down 0.5 sen or 10% to 4.5 sen with 780,000 shares traded, thus valuing the company at RM179 mil. – March 10, 2023
