KUALA LUMPUR: Hiap Teck Venture Bhd
(HTVB) has agreed to subscribe for 54.6 million new shares worth RM53.24 million in 27.3 per cent-owned joint venture Eastern Steel Sdn Bhd (ESSB) which is seeking to raise RM195 million via a proposed rights issue.
HTVB said it signed a share subscription agreement today with ESSB as well as the other shareholders of the Terengganu-based ESSB -- namely, Shanxi Jianlong Industry Company Ltd (68.8 per cent stake) and Chinaco Investment Pte Ltd (3.9 per cent) -- and Shanxi Jianlong’s sister company Jianlong Holdings Sdn Bhd.
"ESSB’s proposed rights issue entails the issuance and allotment of 200 million new ordinary shares at RM0.975 each for a total consideration of RM195 million to be proportionately subscribed by the existing shareholders of ESSB, namely Shanxi Jianlong, HTVB and Chinaco,” it said in a filing with Bursa Malaysia today.
HTVB said the gross proceeds of RM195 million would be used for capital expenditure, including a 1,450 mm hot rolling mill being constructed by ESSB, and working capital requirements.
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