Tien Wah Press plans RM48.25 mil rights issue for business expansion
23 Feb 2016, 10:27 pm
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KUALA LUMPUR (Feb 23): Tien Wah Press Holdings Bhd plans to raise RM48.25 million through a rights issue, mainly for its business expansion plan and construction of a new factory.  

In a filing with Bursa Malaysia today, the printing company said it intends to expand into the Middle East region and/or Indonesia by establishing print packaging production facilities in these countries, and/or acquiring businesses/companies which are involved in operations similar to the group.

Hence, it has allocated RM30 million or 62.2% of the total amount to be raised for the above purpose.

"As at the date of this announcement, the management is still exploring its options in expanding into its target markets," it added.  

It also allocated RM17.45 million or 36.2% to repay its bank borrowing, while the remaining amount will be used to defray the estimated expenses incurred.  

Tien Wah Press said the proposed rights issue entails an issuance of up to 48.25 million shares, on the basis of one rights share for every two existing shares held.

The entitlement date will be determined later by the board, it said.  

It has fixed the issue price at RM1 per rights share, representing a 55.46% discount to its five-day volume weighted average market price of RM2.245 up to and including Feb 22.  

Tien Wah Press noted that its gearing will reduce to 0.2 times, after the completion of the exercise from 0.31 times as at Dec 31, 2014 (audited).
 
"Barring any unforeseen circumstances, the proposals are expected to be completed by the third quarter of calendar year 2016," it added.  

Shares in Tien Wah Press gained seven sen or 2.33% to close at its one month high of RM3.08 today, for a market capitalisation of RM270.19 million.

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