KUALA LUMPUR (March 7): Wood products manufacturer Priceworth International Bhd has garnered the attention of RHB Group founder Tan Sri Abdul Rashid Hussain, who is committing to take up a 6.4% stake in the enlarged share capital of the company via a special issuance of new shares.

To facilitate the equity participation, Priceworth raised the quantum of its planned special issuance of shares to 215.64 million new shares or 30% of the group's enlarged share capital, from 141.25 million shares or 20% previously, to raise up to RM21.19 million from third party investors.

While Abdul Rashid will take up 6.4% in the enlarged capital of Priceworth, his wife Puan Sri Emilahani Yang Mohd Yatim will take up 3.6%. Maha Gayabina Sdn Bhd will end up with 20%. Priceworth inked a conditional share subscription agreement with the trio today.

Maha Gayabina is 50% owned by Mohd Shahrizuan Nordin, 49% owned by Tengku Badrul Hisham Tengku Mohamed Salim and 1% owned by Sukmah Bidu.

The proposed special issue is subject to regulatory and shareholders' approval at an extraordinary general meeting to be convened.

The special issuance is to raise capital to fund Priceworth's RM260 million acquisition of a 100-year concession right to carry out harvesting, forest management and rehabilitation, and industrial tree planting within a 101,161-hectare forest reserve area in Trus Madi, Sabah.

The right was awarded to Anika Desiran Sdn Bhd, which is 99.99%-owned by Rumpun Capaian Sdn Bhd, the vehicle that Priceworth is buying.

Priceworth said it expects to complete the special issuance by the first half of 2017. The group also proposed a private placement and a rights issue to collectively raise up to RM91.17 million, also for the acquisition.

Priceworth's share price gained three sen or 23.08% to close at 16 sen today, giving it a market capitalisation of RM113 million.