KUALA LUMPUR (Oct 15): Globetronics Technology Bhd (KL:GTRONIC) has proposed a bonus issue of up to 368.49 million warrants, offering one warrant for every two existing shares held.
In a filing with Bursa Malaysia, the outsourced semiconductor assembly and test (OSAT) company said the entitlement date will be announced later, as the proposal still requires approvals from Bursa Securities, shareholders, and other relevant authorities.
The warrants will be exercisable any time over three years from their issuance. For illustration, Globetronics assumed an exercise price of 17 sen per warrant — 47.56% lower than the five-day volume-weighted average price of 32.42 sen as of Sept 23.
If all warrants are exercised, the company could raise up to RM62.64 million, which Globetronics is planning to use for working capital and capital expenditure.
TA Securities is the principal adviser for the exercise, which is expected to be completed by the first quarter of 2026.
Globetronics previously revised its financial year end from Dec 31 to March 31, then extended it to June 30. For the quarter ended June 30, the group reported a net loss of RM537,000 on a revenue of RM25.75 million.
Investment in loss-making Mpire raises eyebrows
On July 18, Globetronics disclosed a RM45.05 million investment to acquire a 30.85% equity stake in Mpire Global Bhd (KL:MPIRE), together with 53.99% of its outstanding warrants. This purchase made Globetronics the largest shareholder of Mpire, formerly known as Sand Nisko Capital Bhd.
Mpire is involved in property construction and development, as well as fleet management services (including the trading and leasing of motor vehicles), and has recorded losses for the past three financial years.
Globetronics has defended the acquisition, stating it aligns with its long-term transformation strategy and offers synergistic value to its core business.
Following the deal, Mpire announced board changes on July 24, appointing Francis Leong Seng Wui as an executive director and Ang Pei Gaik as a non-independent, non-executive director. Both individuals previously joined Globetronics’ board on July 1.
Leong also holds directorships in Revenue Group Bhd (KL:REVENUE) and Hong Seng Consolidated Bhd (KL:HONGSENG), with stakes of 5.38% and 5.02% respectively. He previously served as an executive director at Green Packet Bhd (KL:GPACKET) and Classita Holdings Bhd, now known as NexG Bina Bhd (KL:NEXGBINA).
He is also a major shareholder of South Malaysia Industries Bhd (KL:SMI), owning 30.67% through his investment vehicle, Target 1 Sdn Bhd. Target 1 has launched a mandatory takeover offer for SMI, which is being challenged by SMI through legal proceedings and allegations of procedural irregularities.
As of Wednesday’s close, Globetronics shares were up 1.5 sen, or 4.5%, at 34.5 sen, valuing the company at RM233 million. Year to date, the stock has declined 41%.