ADVANCE SYNERGY AIMS TO RAISE RM80 MLN VIA RIGHTS ISSUE

KUALA LUMPUR, March 11 -- Advance Synergy Bhd (ASB) plans to undertake a proposed rights issue on a minimum subscription level basis to raise minimum gross proceeds of RM80 million. 

In a filing with Bursa Malaysia today, the company proposed a renounceable rights issue of up to 1.85 million new right shares in ASB on the basis of two rights shares for every existing ordinary share in ASB held on an entitlement date to be determined later.

The proposed rights issue was determined after taking into consideration the minimum level of funds required by ASB, it said.

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ASB added that the proposed rights issue is the most appropriate avenue of fundraising for investment in its existing businesses and future business expansion or new strategic investment, which is expected to contribute positively to the future financial performance of the group, amongst others. 

The expected timeframe for utilisation of the proceeds is within 36 months. 

The company also proposed an exemption for Datuk Ahmad Sebi Bakar (DASB) and the persons acting in concert (PACs) with him, namely Suasana Dinamik Sdn Bhd, Bright Existence Sdn Bhd, Aryati Sasya Datuk Ahmad Sebi, Anton Syazi Datuk Ahmad Sebi, and Eighth Review (M) Sdn Bhd.

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The proposed exemption comes under the Securities Commission’s Rules on Take-Overs, Mergers and Compulsory Acquisitions.

“The proposed exemption will relieve DASB and his PACs from the obligation to undertake the mandatory offer upon completion of the proposed rights issue, as it is not the intention of DASB and his PACs to undertake the mandatory offer,” said the company that services business and consumer markets in a variety of industries.

The company also proposed the establishment of a share grant scheme (SGS) of up to 10 per cent of the total number of issued shares of the company, at any point of time during the duration of the scheme for eligible directors and employees of ASB and its subsidiaries.

This excludes subsidiaries listed on any stock exchange as well as its group of companies and any dormant subsidiaries of the group.

The proposed SGS serves as a long-term incentive plan to reward the eligible persons and to align their interests with the corporate goals and objectives of the group, the statement said. 

-- BERNAMA