By Alexander Winifred
KUALA LUMPUR (Aug 22) -- Malaysia's Scomi Group, a Malaysian rail and energy services firm, has submitted formal proposals to Scomi Energy Services and Scomi Engineering to merge both units through a share-swap deal.
Scomi Group proposed to pay shareholders of Scomi Energy three shares for every five Scomi Energy shares, and one warrant for every nine shares issued, it said in an exchange filing Monday.
Shareholders of Scomi Engineering will get 10 shares for every 7 Scomi Engineering shares, as well as one warrant for every 10 shares issued, it said.
The combined value of the share and the warrant make up an implied offer price of 0.134 ringgit per Scomi Energy share and 0.316 ringgit per Scomi Engineering share, it added.
In addition, Scomi Group said it plans to consolidate its shares on a two to one basis, a move meant to 'potentially reduce the volatility' in its share price. It also plans to issue 671.13 million bonus warrants on a basis of 7 warrants for every 10 consolidated shares held.
"The maximum proceeds that may potentially be raised are approximately 155.0 million ringgit ($36.17 million)," it said.
Shares of Scomi Group, Scomi Energy Services and Scomi Engineering, which have been suspended since Thursday, will resume trading at 2.30 pm today.
- By Alexander Winifred; Alexander.Winifred@nikkeinewsrise.com; +60320267363
- Edited By Lopamudra Bhattacharya
- Send Feedback to feedback@NikkeiNewsRise.com
- Copyright (c) 2017 Nikkei NewsRise Asia Pte Ltd.