PETALING JAYA: TWL Holdings Bhd, formerly known as Tiger Synergy Bhd, has obtained 99.9997% approval from its shareholders who attended the extraordinary general meeting on Friday for the proposed renounceable rights issue of up to RM111.3 million nominal value of 5.6 billion 5% Redeemable Convertible Unsecured Loan Stocks (RCULS) at RM0.02 each together with up to 1.1 billion free detachable warrants in the company (Warrants E).
The free Warrants E is on the basis of 10 RCULS together with two free Warrants E for every 10 existing shares held by entitled shareholders on the entitlement date.
TWL Holdings managing director Shirley Tan said, “The resounding approval from our shareholders will put us in a strong position to deliver on our development projects for this year.
“We’re confident that we will be able to raise the necessary funds to undertake the development projects that are expected to contribute positively to the group’s future earnings.”
The fund raised from the proposed rights issue is expected to range from RM25 million to RM111.3 million.
According to the circular issued in regard to the proposed rights issue, the projects that the group will fund are the development of 715 units of affordable housing under the Rumah Selangorku scheme to be undertaken on the EN10 Land, the development of 746 units of affordable housing under the Rumah Selangorku scheme to be undertaken on the EN11 Land and the development of 1,139 units of affordable housing under the Rumah Selangorku scheme to be undertaken on the HT4 Land.
EN10 project, EN11 project, and HT4 project have a gross development value (GDV) of RM171.7 million, RM179 million, and RM273.3 million, respectively, bringing the total GDV of the projects to RM624 million.
Shirley also added that the group is committed to delivering the project for affordable housing that targets the local community, with an intention to support the government initiatives under Budget 2023 to build and provide affordable houses.
Under the Budget 2023, the government recommended some initiatives e.g. stamp duty waiver for first-time house buyers and government home financing so that the local community can easily own a house.
She also shared that the shortfall in TWL’s funding requirements for the three projects is expected to be met via internally generated funds, bank borrowings.