Dialog's Ngau places out shares to institutional investors

PETALING JAYA: Dialog Group Bhd's executive chairman and major shareholder, Tan Sri Ngau Boon Keat has placed out 85.6 million shares, representing a 1.7% interest in the group, to certain institutional investors.
Following the placement of the placement shares, Ngau and parties connected to him are committed to convert their warrants into ordinary shares in Dialog within the next few weeks.
Ngau and parties connected to him intend to mainly utilise the net proceeds from the placement to exercise their current holdings of up to 108.329 million warrants in Dialog into shares.
Upon conversion, the ordinary shares represents 108.329 million ordinary shares or 2.1% of the enlarged total paid-up share capital of Dialog and the total interest of Ngau and parties connected to him will be 1.181 billion shares or 23.3% of Dialog.
The net effect of the placement and conversion of warrants by Ngau and parties connected to him will be the increase in the working capital of Dialog which can be utilised to finance Dialog's investment commitments in the recently announced Pengerang Terminal Phase 2 Project and Pengerang LNG Project as well as maintain a healthy net gearing ratio for Dialog, which stood at 0.19 as at Dec 31, 2014.