Southern Steel plans RM210 rights issue

PETALING JAYA: Southern Steel Bhd (SSB) is planning to undertake a renounceable rights issue to raise RM209.7 million to repay its bank borrowings and for its working capital.
The rights issue entails an issuance of RM209.7 million nominal value of five year 5% redeemable convertible unsecured loan stocks (RCULS). This will be on the basis of one RM1.00 RCULS for every two share held.
"The proposed rights issue of RCULS will enable the company to raise funds for the repayment of bank borrowings and for general working capital purposes…which is expected to contribute positively to the future performance of the SSB Group," the company told Bursa Malaysia yesterday.
To accommodate the proposed rights issue, SSB plans to increase its authorised share capital to RM802 million comprising 800 million SSB shares and 2 million preference shares from RM502 million comprising 500 million SSB shares and 2 million preference shares.