Golden Agri Resources (GGR) announces 17-for-100 rights issue at S$0.18/share, representing about 60.0% discount to yesterday's closing price or 56% to the theoritical ex-rights trading price of S$0.41.
The right issue will be atttached with 2-for-5 warrants with 3-year maturity date and at an exercise price of S$0.54/share.
The exercise from the right issue will raise fund approximately S$311m (after deduction of estimate expenses), while the exercise of warrants will raise fund of S$381m (assuming all the warrants exervised). About 80% used of the right and warrants proceeds to support company's business through organic growth as well as through external acquisitions, while remaining 20% would be used for working capital. This right issue figure of US$311m accounted about 7% of market capitalization.
Flambo International Limited, together with nominees and custodians, which hold a 48.6% stake in GGR, have undertaken to fully subscribe for their entitlement of rights units.
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