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 JAKS (4723) JAKS RESOURCES BHD Resources rights issue oversubscribed by 28.71%

KUALA LUMPUR (Nov 18): JAKS Resources Bhd, which is engaged in construction, property development and power projects, said its rights issue with warrants was oversubscribed by 28.71%.

The company said it has received applications for 1.39 billion rights shares, overshooting the 1.08 billion shares available for subscription.

In a statement today, JAKS chief executive officer Andy Ang Lam Poah said the oversubscription figure indicated shareholders' confidence in JAKS’ business fundamentals and future perspectives to further grow its existing power portfolio in Vietnam.

"Given the bright outlook in the renewable energy (RE) industry, we will also continue to focus on power and energy sector in Malaysia. We are actively exploring viable opportunities to acquire RE power plants, which can enhance our earnings visibility."

JAKS will raise RM237.6 million from this corporate exercise, the bulk of which will be utilised for the subscription of an additional 30 million Jaks Pacific Power Ltd shares for US$30 million, which translates to about RM128.4 million. The balance of the proceeds will be used for future business projects and/or investments, partial repayment of borrowings, initial expenses arising from new ventures in Vietnam and for working capital.

JAKS' rights issue entails the issuance of up to 1.29 billion rights shares together with up to 646.04 million warrants on a basis of eight rights shares together with four warrants for every five existing JAKS shares. The rights shares and warrants are expected to be listed on Bursa Malaysia on Nov 26.

In a separate filing, JAKS said the company and Star Media Group Bhd had agreed for their respective appeals against part of the decision of the judge in its application pursuant to Order 14A, Order 18 Rule 19 and Order 81 of the Rules of Court 2012 to be consolidated and heard together. The appeals are fixed for further case management on Dec 3.

"The company will make further announcement on the developments of the matter as and when necessary," it added.

JAKS shares finished 2.63% or 1.5 sen higher at 58.5 sen today, valuing it at RM394.91 million. It saw 15.98 million shares changed hands.

http://www.theedgemarkets.com/article/jaks-resources-rights-issue-oversubscribed-2871%C2%A0

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