EPF, Gapurna to avoid triggering MGO under MRCB’s cash call exercise

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KUALA LUMPUR: The Employees Provident Fund Board (EPF) and Gapurna Sdn Bhd will apply for excess rights with rights warrants under Malaysian Resources Corp Bhd’s (MRCB) proposed 1-for-1 rights issue with warrants provided that they do not trigger the obligation for a mandatory geeral offer (MGO).

In a filing with Bursa Malaysia, MRCB said its two biggest shareholders had decided not to pursue the proposed MGO exemption to enable the company to complete the proposed rights issue expeditiously.

Both have indicated that they will subscribe in full for their entitlements under the proposed rights issue.

MRCB said they also still intended to apply for excess rights shares with rights warrants, but their application would not result in them triggering an MGO.

EPF and GSB hold 33.25% and 16.63% of the voting shares of MRCB respectively based on Bloomberg data.

MRCB’s proposed rights issue will entail an issuance of up to 2.86 billion rights shares together with up to 571.343 million free rights warrants at an issue price to be determined later.

It will be on the basis of one rights share for every existing MRCB share held and one free rights warrant for every five rights shares subscribed.