Central Global Berhad’s (“CGB”) proposed private placement of up to 18 million new ordinary shares has been approved by Bursa Malaysia Securities Berhad (“Bursa Securities”).
CGB executive chairman Dato’ Faisal Zelman
CGB is a manufacturer of specialised industrial tapes and label stocks that pioneered industrial hi-temp masking tapes manufacturing and is a one-stop solution provider for crepe paper masking. The Group’s other business is construction, where it recently won a subcontract valued at RM100.54 million to upgrade water supply infrastructure in Lahad Datu, Sabah.
A letter from Bursa Securities dated 22 April 2021 was received by TA Securities Holdings Berhad (“TA Securities”), the advisor and placement agent for CGB, informing of the approval for the listing and quotation of up to 18 million new ordinary shares to be issued pursuant to the proposed private placement.
The proposed private placement is subject to CGB and TA Securities fully complying with the relevant provisions under the Main Market Listing Requirements of the proposed private placement; that CGB and TA Securities inform Bursa Securities upon completion of the proposed private placement; that CGB furnishes Bursa Securities with a written confirmation of the Group’s compliance with the terms and conditions of Bursa Securities’ approval once the proposed private placement is completed; and, in the event the proposed private placement is not completed before the next annual general meeting (“AGM”), that CGB furnishes a certified true copy of the resolution passed by shareholders for a general mandate under Sections 75 and 76 of the Companies Act, 2016 at the Group’s forthcoming AGM.
CGB executive chairman Dato’ Faisal Zelman said, “We are glad for the approval as we have plans in the pipeline to expand our manufacturing and construction businesses. We need new machinery that is more efficient and cost-effective for our manufacturing operations and we will use part of the proceeds to fund a construction project in Pulau Pinang.”
“As we have plans beyond the immediate ones for both the manufacturing and construction businesses, we are also allocating a portion of the proceeds for future growth as well as having a portion for working capital purposes.”
For more information, please contact: Hakim Juraimi Tel: +60 12-318 5410 Email: [email protected]
Main Market-listed Central Global Berhad (CGB) has proposed a private placement of up to 18 million new shares representing not more than 20% of the Group’s total number of issued shares to qualified third-party investors to be identified at a later date.
Central Global Berhad’s factory in Sungai Petani, Kedah
CGB is a manufacturer of specialised industrial tapes and label stocks that pioneered industrial hi-temp masking tapes manufacturing and is a one-stop solution provider for crepe paper masking. The Group’s other business is construction, where it is currently mostly active in the northern region of Peninsular Malaysia.
The proposed placement may be implemented in several tranches within six months from the date of approval from Bursa Malaysia Securities Berhad (“Bursa Securities”), with there being potentially several price-fixing dates and issue prices of the placement shares to be determined separately and fixed by the Board of Directors of CGB after the approval from Bursa Securities. These new shares[1] will carry the same rights as the existing issued shares.
The proceeds from the private placement will be used for a new masking tape coater production line, funding for an existing construction project, working capital and, estimated expenses related to the private placement exercise.
The Group’s Board of Directors have laid out plans to fortify the manufacturing business while at the same time expand the construction business through more contracts.
CGB executive chairman Dato’ Faisal Zelman said, “The private placement exercise is in line with our plans for the production of masking tapes in the Group’s manufacturing business. We want to focus on keeping critical production volumes up, undertake efforts to drive efficiencies in production that can minimise wastage as well as ensure consistency in product quality, which is key to recurring orders especially for our export orders.”
“We are also using the proceeds to fund a project in Pulau Pinang from our construction business. We were awarded this project in January 2020 and work commenced in July 2020. We will continue to undertake construction projects and have tendered for several projects. A portion of the proceeds from the private placement exercise will also be used for working capital purposes as well as accelerating future business expansion.”
TA Securities Holdings Berhad has been appointed the advisor and the placement agent for the proposed private placement.
[1] Such new shares will not be entitled to any dividends, rights, allotments and/or any other distributions which may be declared, made or paid to the Company’s shareholders unless such new shares were allotted and issued on or before the entitlement date of such rights, allotments and/or other distributions.
For more information, please contact: Hakim Juraimi Tel: +60 12-318 5410 Email: [email protected]
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