Pestech Proposes Restricted Share Issuance To Dhaya Maju Worth RM160 Mln

KUALA LUMPUR, Oct 4 (Bernama) -- Pestech International Bhd (Pestech) has entered into a conditional subscription agreement with Dhaya Maju Infrastructure (Asia) Sdn Bhd (DMIA) for the proposed restricted issuance of the company's shares worth RM160 million.

The agreement entails the issuance of 1.33 billion shares at the price of 12 sen per share, representing approximately 135.43 per cent of Pestech’s existing total number of issued shares (excluding treasury shares) and approximately 57.52 per cent of the enlarged issued shares of the company.

As of Sept 20, 2024, its issued share capital stood at RM232.94 million, comprising 992.22 million shares, including 7.67 million treasury shares.

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In a filing with Bursa Malaysia, Pestech said the proposed restricted issuance will enable the group to raise funds more expeditiously and in a cost-effective manner.

"The move is expected to create strategic and synergistic collaboration between the group and DMIA Group, while enhancing competitiveness, offering more comprehensive solutions, enabling participation in larger-scale projects and expanding the geographical footprint of both parties.  

"With the inclusion of DMIA Group, both parties will be able to expand their capabilities, offering more holistic and integrated construction and project management solutions and services to their customers by leveraging each other’s expertise, strength and competencies, particularly in rail-related infrastructure development," it said.

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At the same time, Pestech has proposed capitalisation on the deposit of RM16 million -- being 10 per cent of the subscription price paid by DMIA to the company upon execution of the share subscription agreement.

DMIA also proposed to seek an exemption from the Securities Commission Malaysia from the obligation for it to undertake a mandatory take-over offer to acquire the remaining Pestech shares and outstanding warrants upon completion of the exercise.

-- BERNAMA