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PMB Technology to diversify, launches RM200mil cash call

KUALA LUMPUR: PMB Technology Bhd
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 (PMBT) plans to diversify its activities to include metallic silicon manufacturing and has launched a cash call to raise about RM200mil to make it a reality.

In a filing with Bursa Malaysia, the aluminium curtain wall and cladding maker said the diversification would provide an additional revenue stream and potentially increase the group’s profit.

Metallic silicon enhances the properties of aluminium by improving its castability, hardness and strength. It is widely used as the feedstock to make monosilicon and polysilicon, which are the main materials used in making solar cells and semiconductor devices.

PMBT plans to set up its silicon facility, with an annual production capacity of 36,000 tonnes, in Samalaju Industrial Park, Bintulu, Sarawak, and have it operational by end of next year.

Among others, the company noted that its chief executive officer Koon Poh Ming was also currently the executive vice chairman of Press Metal Aluminium Holdings Bhd (the holding company of PMBT’s biggest shareholder Press Metal Bhd
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) and had been actively involved in the aluminium trading and manufacturing and construction for more than 30 years.

PMBT estimated the total capital expenditure required to set up the facility would be RM320mil, of which 63% or RM200mil would be funded by equity financing from a proposed rights issue of irredeemable convertible unsecured loan stocks (Iculs) with free warrants.

Another RM100mil will come from bank borrowings, while RM20mil will be sourced from internally generated funds and/or future borrowings.

On the proposed rights issue, PMBT said it would be implemented after a proposed share split on the basis of an existing PMBT share into two subdivided shares.

Of the RM200mil gross proceeds, RM102.7mil will be used to build the facility and RM96mil to purchase the equipment.

PMBT estimated that the capital outlay required from a shareholder holding 100 PMBT shares who wanted to fully subscribe for his entitlement was about RM258.13. 

The Iculs will have a five-year tenure (like the free warrants to be issued along with them) and a fixed coupon rate of 3% per annum.

PMBT will seek the approval of its shareholders for the proposed diversification at an EGM to be convened.


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