KUALA LUMPUR (Jan 16): Scomi Group Bhd will hold an EGM to vote on a proposed issuance of convertible redeemable secured bonds with an aggregate value of RM110 million that will pave the way for IJM Corp Bhd to hold a 24% stake in the company.
In a circular to shareholders filed with Bursa Malaysia, Scomi stated that the EGM would be held on Jan 31, 2013, at 2.30pm at Tropicana Golf & Country Resort.
The purpose of the EGM is to seek shareholders’ approval for the proposed bond issue together with a completed placement that will provide Scomi with a strategic partner in IJM.
The subscription agreements for the proposed bond issue and placement were entered into between Scomi and IJM Corp Bhd on Sept 24, 2012, as Scomi required immediate funds to meet its debt obligations.
The proposed bonds would allow Scomi to fully repay the bridging loan facility that will become due for full repayment on Feb 13, 2013.
After the completion of the proposed bond issue, IJM would hold a strategic stake of 24.36% in Scomi.
Nevertheless, "the proposed bond issue will not have any immediate effect on the existing issued and paid-up share capital of the company", said Scomi Group.
The entry of IJM as a substantial shareholder of Scomi would enable it to leverage IJM’s expertise in civil engineering, which would complement the existing business of Scomi.
Scomi said it believed that it would be able to tap into the experience of IJM in project management and also explore possible collaborations to bid for engineering or construction projects.