KUALA LUMPUR: Friday [9 February, 2006] – Shareholders of BIMB Holdings Berhad’s (BHB) today voted to renew the authority given to the Directors to issue and allot the shares to be issued pursuant to two corporate exercises.
These corporate exercises are, the rights issue of 309.938 million shares and the acquisition of the remaining 49% of BIMB Securities Sdn Bhd (BIMBSEC) from Permodalan Nasional Berhad for RM54.453 million.
The rights issue, to be allotted on the basis of one new share for every two existing BHB shares, is expected to raise proceeds of RM281.48 million, most of which will be used to repay advances from Lembaga Tabung Haji.
The acquisition of BIMBSEC for RM54.453 million is to be satisfied by the issue of 46.942 million BHB shares at an issue price of RM1.16 each. The acquisition will result in BIMBSEC being 100% owned by BHB.
Both the rights issue and the acquisition were approved by shareholders at an EGM held on 14 June last year. In approving the corporate exercises, the shareholders had given Directors the mandate to issue and allot the shares to be issued pursuant to the exercises.
That mandate was valid until the annual general meeting, which was held on 15 December, 2006. However, as the corporate exercises were not completed at the conclusion of the annual general meeting, BHB had to seek shareholders to renew the mandate.
BHB Group Managing Director Dato’ Noorazman A. Aziz said the Company has received the Securities Commission’s approval to extend the deadline for the completion of the corporate exercises to 31 March 2007 and the directors expect to complete them by then.
He added that the corporate exercises form part of the rationalization of the Group that began last year in line with the Government’s GLC transformation programme,