KUALA LUMPUR (June 23): Malaysian Resources Corp Bhd (MRCB) said its major shareholders Employees Provident Fund (EPF) and Gapurna Sdn Bhd (GSB) will avoid triggering any mandatory general offer (MGO) while they apply for excess rights shares and warrants under the group’s cash call exercise.

However, neither EPF nor Gapurna will be seeking an exemption from undertaking an MGO that could be triggered under the exercise.

This is to allow MRCB to complete its planned renounceable rights issue quickly, said MRCB in a Bursa Malaysia filing yesterday.

“EPF and GSB will continue to subscribe in full for their entitlements under the proposed rights issue ... for the avoidance of doubt, it remains their intention to apply for excess rights shares with rights warrants, provided such application will not result in them triggering a MGO for the remaining shares and convertible securities not already owned by them,” said MRCB.

The one-for-one rights issue, proposed in May, comes with free warrants, on the basis of one warrant for every five rights shares to raise up to RM2.9 billion. The bulk of the money to be raised will be used to fund the refurbishment and upgrading of the Bukit Jalil National Sports Complex, and to repay bank borrowings.

This article first appeared in The Edge Financial Daily, on June 23, 2017.

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