KUALA LUMPUR (Aug 17): Censof Holdings Bhd is trimming its stake in Dagang Nexchange Bhd (DNex) by 7.3%, from 28.6% currently, at 25 sen per share, as well as selling off its entire warrants holdings in the latter, to raise up to RM32.3 million to pay off its bridging loans.

Censof holds 19.6% of DNex's warrants prior to the disposal, after trimming it from 26.2% earlier this month. The warrants are being disposed of at 1 sen each.

The disposal will result in a loss of approximately RM1.2 million for Censof.

Censof inked a share sale agreement (SSA) with Arcadia Acres Sdn Bhd (Arcadia) today for the disposal of 123.8 million DNex shares and 136.5 million warrants of the same company.
 
In a filing, Censof said the share disposal represents 7.3% of shareholdings in DNeX, while the sale warrants represent Censof’s entire warrant holdings in DNeX of 19.6%.
 
Though the transaction is a loss-making one, the disposals would raise funds for Censof to expediently repay about RM31.8 million of the total RM36.2 million bridging loans taken by the company, to part finance its subscription for its entitlement under DNeX’s right issue, pursuant to an irrevocable written undertaking provided by Censof in 2014.

"Some of the rights issue loans are due and payable by August 31, 2016," it said.
 
A such, the entire gross proceeds of the shares and warrants sale of RM32.3 million will be used to settle the rights issue loans and to defray estimated expenses in relation to the disposal.
 
Arcadia is a private company incorporated in Malaysia on Feb 22, 2016. Its shareholders are Zainal Abidin Abd Jalil (78%) and Wan Azryn Wan Ab Rashid (22%).

Zainal is DNeX’ group managing director, while Wan Azryn is chief executive officer of DNeX Oilfield Services Sdn Bhd, which is primarily responsible for driving the oilfield service offering within DNeX’ energy business line.
 
As of closing, Censof’s share price gained 7.14% to 22.5 sen, after 14.5 million shares exchanged hands, for a market capitalisation of RM112.9 million.

DNeX’ share price also climbed 6.67% to 24 sen, after 128.5 million shares exchanged hands, valuing it at RM297.7 million.