Landmarks to raise up to RM36.93m via private placement

KUALA LUMPUR (April 18): Landmarks Bhd is proposing a private placement to raise as much as RM36.93 million to revitalise and grow its business through the injection of fresh equity into the group, with an indicative issue price of 76 sen per placement share.

In a filing with Bursa Malaysia today, the group said the indicative price represents a discount of 9.5% to the five-day volume weighted average price of Landmarks' share price of up to and including the latest practicable date (LPD) of 84 sen.

The placement involves issuing up to 48.59 million new shares, representing up to 10% of the group's enlarged issued share capital, to third-party investors to be identified later.

"Based on the indicative issue price of 76 sen per placement share, the group is expected to raise gross proceeds of RM36.54 million under the minimum scenario and RM36.93 million under the maximum scenario upon completion of the proposed private placement," it said.

Under the maximum scenario, RM13 million will be used to repay a term loan obtained from Malayan Banking Bhd, RM11.6 million for capital expenditure as part of the development of the 338-hectare Treasure Bay Bintan waterfront resort city in Bintan, Indonesia, RM11.46 million for working capital and the remaining RM870,000 to defray expenses in relation to the exercise.

Landmarks said the proposed private placement will enable it to raise fresh funds without incurring additional interest costs compared with debt financing.

As at the LPD, the group's total borrowings stood at RM95.4 million.

"The partial settlement of the term loan is expected to allow the group to reduce its interest costs by about RM700,000 every year based on the interest rate of the term loan of 5.1%," it added.

Barring unforeseen circumstances, the proposed private placement is expected to be completed by the second quarter of 2017.

At 4.19pm, Landmarks shares were down 0.5 sen or 0.61% at 81.5 sen, with 183,100 shares traded. Its market capitalisation was RM391.86 million. — theedgemarkets.com

For more stories, download TheEdgeproperty.com pullout here for free.