7-Eleven plans rights issue of new warrants

PETALING JAYA: 7-Eleven Malaysia Holdings Bhd has proposed to undertake a rights issue of up to 616.69 million new warrants to raise up to RM61.67 million for working capital.

In a filing with Bursa Malaysia yesterday, the company said the rights issue will be done on the basis of one warrant for every two existing shares held at an issue price of 10 sen per warrant.

7-Eleven intends to use the proceeds to finance its working capital requirements including but not limited to payments to suppliers and operating expenses such as rental, store utilities, insurance, store maintenance and royalties payable.

The company noted that the rights issue exercise will increase its shareholders' funds and thereby improve its gearing level.