Dayang Enterprise plans private placement to raise RM87.7m

PETALING JAYA: Dayang Enterprise Holdings Bhd proposes to undertake a private placement exercise to raise RM87.71 million to repay bank borrowings.
In a filing with the stock exchange, the group said the expected amount raised is based on an indicative placement price of RM1 per share.
Proceeds from the private placement will be used to repay bank borrowings, which stood at RM1.64 billion as at Dec 31, 2016.
For illustrative purposes, based on Dayang's average bank facilities’ interest rate of 6.14%, the partial repayment of the group’s bank borrowings is expected to result in interest cost savings of about RM5.29 million a year.
Dayang said this will enable the group to better manage its gearing level and add financial flexibility to its cash flow management to position the group for securing and implementing new projects in the future.