KUALA LUMPUR: Siab Holdings Bhd plans to raise RM103.98 million through a private placement, of which RM12 million has been completed on Dec 28 2023, and a rights issue with warrants.
These funds will be used to finance the acquisition of Taghill Projects Sdn Bhd.
According to Siab, these exercises support the acquisition of Taghill, which will bolster the company's growth trajectory.
The company noted that the acquisition of Taghill is set at RM122 million, to be settled with RM96.00 million in cash.
Meanwhile, the issuance of 200 million new Siab shares ia at 12 sen each as detailed in the circular issued by the company dated Nov 16, 2023.
Siab group managing director Ng Wai Hoe said the integration of Taghill into its operations allows the company to leverage on each other's specialty.
"This will significantly enhance the company's overall value and create synergy for us to work together closely over a longer horizon," he said in a statement.
Taghill is a construction project and contract management consultancy company, which has completed 12 major construction projects worth RM1.58 billion.
Currently, Taghill boasts a robust order book valued at RM1.31 billion and has committed to a profit guarantee of at least RM24.00 million for the financial years 2024 and 2025.
Taghill has a strong orderbook of RM1.31 billion.
The rights issue with warrants will be underwritten by M&A Securities Sdn Bhd, the principal adviser, managing underwriter and joint underwriter to the company, as well as NewParadigm Securities Sdn Bhd, the joint underwriter to Siab.