|Proceeds of private placement to be used for new machinery and construction project funding|
KUALA LUMPUR, Apr 5, 2021 - (ACN Newswire) - 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 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.
 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:
Tel: +60 12-318 5410
Topic: Press release summary
Source: Central Global Berhad
Sectors: Daily Finance, Construct, Engineering, Local Biz
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