KUALA LUMPUR (Oct 5): Loss-making Majuperak Holdings Bhd said the Perak State Agricultural Development Corp (PPPNP) has proposed to subscribe for 56.88 million new shares in the company, representing 20% of its existing issued shares.

PPPNP will pay 33.5 sen per share or a total of RM19.05 million for the shares, Majuperak said in a bourse filing on Tuesday.

Majuperak, an indirect subsidiary of the Perak government, had a total of 284.42 million issued shares worth RM188.42 million as at Sept 30.

Of the RM19.05 million proceeds raised from the proposed share subscription, Majuperak said RM9.55 million will be used for general working capital requirements.

Another RM7 million will go towards repayment of bank borrowings, RM2 million for funding of facility management project, while the remaining RM500,000 will be utilised for expenses of the proposed subscription.

Majuperak said the share subscription is the most appropriate avenue to raise funds for the PN17 company while it is in the midst of formulating its proposed regularisation plan. The company needs to come up with a regularisation plan by March next year.

Majuperak's share price closed 1.5 sen or 4.11% lower at 35 sen, valuing the company at RM98.2 million.