KUALA LUMPUR (Nov 5): Electrical engineering services provider HE Group Bhd (KL:HEGROUP), which was listed on the ACE Market in January, said its major shareholders plan to dispose of 4.54% of their shares to comply with a Bumiputera equity condition set by the authorities.
The shares, totalling 20 million, are collectively held by Hexatech Energy Consolidated Sdn Bhd as well as HE Group managing director Haw Chee Seng and executive director Eng Choon Leong, the company said in a filing on Tuesday.
Hexatech Energy, which is controlled by Datuk Wira Yong Chong Cheang, currently holds a 20.89% stake in HE Group, while Haw has a 20.42% stake and Eng a 14.8% stake. After the sale, Hexatech Energy will be left with a 18.13% stake, Haw 18.12%, and Eng 12.77%.
Proceeds from the sale, estimated at RM13 million based on an illustrative price of 57 sen per share, will be mainly used for working capital, said HE Group.
The proposed sale by the three shareholders comes after the company last month proposed a special issue of 45.6 million new shares or 9.39% of the company's enlarged share capital to meet its Bumiputera equity condition. The prices for both special issues and the sale by the three shareholders will be fixed at a later date.
The special issue is expected to raise RM26.9 million at the illustrative price of 59 sen per share and will also be used for working capital.
Currently, 3.43% of HE Group’s equity stake or 15.1 million shares, is held by Bumiputera investors approved by the Ministry of Investment, Trade and Industry.
After the proposed exercise, HE Group is expected to have 12.5% (57.9 million shares) of its shareholding held by Bumiputera investors. This will also raise HE Group’s share base to 462.8 million shares.
Shares of HE Group closed down one sen or 1.77% to 55.5 sen, valuing the group at RM244.2 million.