Wong Engineering to raise up to RM52.3m for facility management business. (The Edge Markets) KUALA LUMPUR (Jan 23): Wong Engineering Corporation Bhd (WECB) has proposed a 80:20 joint venture with Widad Builders Sdn Bhd (WBSB), to participate in the facility management contract for the JB Sentral building in Bukit Chagar, Johor Bahru, the company announced in a filing to Bursa Malaysia. ----------------- Profit.at.Bursa ----------------- JB Sentral, which is owned by the Prime Minister’s Department, has been operating since 2009 as the transportation hub for Johor Bahru. To undertake the contract, WECB would pay WBSB a participation fee of RM20 million, a refundable performance deposit of RM100,000, and meet the working capital needs of the JB Sentral contract for up to RM12 million, within a period of 12 months. In order to fund the contract, WECB has proposed a special issues of 27.5 million new shares, as well as a renounceable rights issue of up to 59.59 million new shares — on the basis of one-for-two, at 60 sen each. This would raise a total of RM52.25 million. The 27.5 million special issue shares alone would represent approximately 30% of the issued and paid-up share capital of WECB. The shares are proposed to be placed out to Widad Business Group Sdn Bhd (WBGSB), being a related company to WBSB by virtue of having common shareholders, as a strategic investor in WECB. Holders of the special issue shares are also entitled to subscribe for the rights issue as well. “The board anticipates that the WECB’s venture into facility management business under the proposed JV, will likely contribute to 25% or more of the net profits of the company in the future, and the board also anticipates that the facility management business will be one of the major contributor to the WECB, as it will continue to seek and secure more facility management concessions in the future,” it said. WECB manufactures high precision component parts. It also provides product design, development and manufacturing services catering to the oil & gas, aerospace, telecommunication, test instrument, automotive and medical devices sectors. It posted a loss of RM5.15 million on a revenue of RM26.67 million, in the financial year ended Oct 31, 2014. WBSB and its related companies are involved in various businesses, including services, construction, property development and hospitality, agriculture, professional consultancy and communications. WECB closed 4.5 sen or 7.1% higher at 68 sen today, with a market capitalisation of RM58.14 million. ----------------- Profit.at.Bursa ----------------- | #saham | #wong |
Posted on: Fri, 23 Jan 2015 13:22:58 +0000
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