Dijaya proposes rights issue to raise RM100 million

The Edge Daily, 18 January 2008 - By Woon Wu Lin

KUALA LUMPUR: Property developer Dijaya Corporation Berhad has proposed a renounceable two-call rights issue of up to 214.11 million new shares with up to 142.74 million free warrants to raise a minimum of RM100 million for its working capital and funding requirements.

In a statement yesterday, Dijaya said issuance of the rights shares and free warrants will be implemented on a renouncable basis of three rights shares and two free warrants for every four existing shares of RM1 held based on a minimum subscription level of 126 million rights shares together with 84 million warrants.

It said the rights shares would be issued at RM1 per share with the first call at 80 sen payable in cash and the second call at 20 sen which would be capitalised from the company's share premium account.

"The actual number of rights shares and warrants to be issued will be determined on the entitlement date, based on its paid-up capital and taking into consideration its existing 10.29 million outstanding employee share option scheme (ESOS) options and a further 15.58 million ESOS options being exercised," it said.

Dijaya said it would procure an irrevocable written undertaking from its group chief executive officer Tan Sri Tan Chee Sing and major shareholders Golden Diversity Sdn Bhd and Impeccable Ace Sdn Bhd, to take up their respective entitlements of rights shares.

Collectively, the three parties hold 164.23 million shares representing 63.26% of Dijaya's share capital, it said.

Dijaya's proposed rights issue with warrants is conditional upon the proposed increase in authorised share capital and amendment to articles. It plans to increase its authorised share capital to RM1 billion comprising the same number of shares through the creation of 500 million new shares.