CEO Morning Brief

Sam Engineering to Buy Aviatron, Proposes Rights Issue

Publish date: Thu, 23 Nov 2023, 09:04 AM
0 20,892
TheEdge CEO Morning Brief

KUALA LUMPUR (Nov 22): Sam Engineering & Equipment (M) Bhd (Samee) has proposed to acquire the entire equity interest in Aviatron (M) Sdn Bhd from Singapore Aerospace Manufacturing Pte Ltd for US$43.40 million (approximately RM202.24 million) cash.

In a Bursa Malaysia filing on Wednesday, the engineering company said it is a “timely opportunity” after taking into consideration Aviatron’s prospects and healthy order book, which is supported by long-term contracts with two major customers — subsidiaries of the world’s largest supplier of aerospace and defence products — as they raise aircraft production and deliveries.

In the same filing, Samee also said they have proposed a renounceable rights issue, involving the issuance of 135.40 million new ordinary shares.

“The issue price for these rights shares will be announced by the Samee board later, on one-for-every-four existing Samee shares held by eligible shareholders on a yet-to-be-determined entitlement date,” it said.

The company said the proposed rights issue is to enable the issuance of new Samee shares without diluting the existing shareholders’ shareholding, so long as they subscribe fully for their respective entitlements.

“It is also to provide the entitled shareholders [with] an opportunity to participate in an equity offering in our company at a discount to the theoretical ex-rights price, and to continue to participate in the prospects and future growth of our enlarged group by subscribing to the rights shares.

“Another reason is to strengthen our group’s financial position with enhanced shareholders’ funds, and to reduce gearing to facilitate long-term growth and expansion,” it added.

Source: TheEdge - 23 Nov 2023

Related Stocks
Market Buzz
Be the first to like this. Showing 0 of 0 comments

Post a Comment