KUALA LUMPUR: Borneo Oil Bhd (BornOil) is raising RM223.39 million through a proposed rights issue with free warrants, aimed at expanding its lucrative gold mining activities in Peninsular Malaysia.
The exercise would strengthen BornOil’s gold mining activities, which comes under the oil, gas and energy-related business division, the company said in a statement today.
“Now with this exercise, the company is optimistic that the net contribution from prospecting and mining works would potentially exceed 25 per cent or more of Bornoil Group’s net profit in the near future,” the company said.
For the financial year ended Jan 31, 2015, the division recorded a profit of RM5.5 million on the back of revenue of RM34.6 million.
Meanwhile, for its fast food chain segment, BornOil plans to add 14 more new ‘Sugarbun’ franchise outlets this year, that will further contribute to the company’s bottomline and strong cash flow.
There are currently 76 Sugarbun franchise outlets in Malaysia.
Victoria Ltd and Hap Seng Insurance Services Sdn Bhd, substantial shareholders of BornOil, have pledged to fully subscribe for their respective entitlements.
Meanwhile, the public portion of the rights issue will be underwritten by RHB Investment Bank Bhd. – Bernama