OCK plans rights issue to raise up to RM145 million

SHAH ALAM: Telecommunications network service provider, OCK Group Bhd is planning to undertake a renounceable rights issue of up to 290.5 million new shares on the basis of one rights share for every two existing shares held.
Attached together with the rights shares there will be free detachable warrants on the basis of one warrant for every one rights share subscribed.
The proposed renounceable rights issue with warrants is expected to raise gross proceeds of up to RM145.24 million based on the indicative issue price of 50 sen per rights share.
"The objective of this corporate exercise is to strengthen our financial position and prepare the Group to seize future opportunities for business expansion and working capital. We are offering our existing shareholders the opportunity to take part in our future plans," OCK group managing director Sam Ooi said in a statement yesterday.
"The attaching warrants of this exercise will potentially allow the entitled shareholders to benefit from the possible capital appreciation of the warrants and increase their equity participation in the company," he added.
Business expansion would include costs of investments into acquisition of companies, acquisition of existing brownfield telecommunications infrastructure, and building new greenfield telecommunications infrastructure, inclusive of towers, sites, equipment to lease to telecom operators in the Asean region.