LBS to inject construction unit into ML Global

KUALA LUMPUR: LBS Bina Group Bhd is reorganising its construction division by disposing its 75% stake in construction unit MITC Engineering Sdn Bhd (MITCE) through MITC Sdn Bhd, to its 51.18%-owned subsidiary ML Global Bhd for RM225 million.
This exercise will be satisfied by the allotment and issuance of 200 million shares of 50 sen each in ML GLobal at an issue price of 67 sen per share; and 135 million new irredeemable convertible preference shares (ICPS) of 50 sen each in ML Global at an issue price of 67 sen per ICPS.
The remaining 25% stake in MITCE is owned by Lim Lit Chek and he will also dispose his entire stake in MITCE to ML Global.
The proposed disposal is being undertaken as part of LBS's plan to streamline its construction businesses under ML Global and its subsidiaries by consolidating the resources of ML Global and MITCE for greater operational and financial efficiency.