Zecon fixes issue price at 25 sen

KUCHING: Zecon Bhd has fixed the issue price for its private placement at 25 sen per share. The issue price represents a discount of about 8.19 percent to the five-day volume weighted average price (VWAP) of Zecon shares at 27.23 sen (up to July 10), the company said in a filing with Bursa Malaysia.

Debt-laden Zecon expects to raise up to RM3.28 million in the private placement that entails an issuance of up to 10 percent of the company’s total issued shares or up to 13.1 million new shares.

On July 2, Bursa Malaysia Securities Bhd approved the listing and quotation of up to 13,101,675 new ordinary Zecon shares to be issued under the private placement.

Zecon has said that the money raised is to address the group’s general working capital requirements for the time being.

Zecon shares are currently trading around 27 sen against its 52-week high of 46 sen.

Based on Zecon’s audited account as at June 30, 2018, the group’s current liabilities stood at RM715.71 million against current assets of RM228.62 million.

Zecon’s financial woes worsened after the federal government terminated the company as the turnkey contractor for the RM495 million Petra Jaya Hospital project here a year ago for ‘unacceptable delay.’

The project was supposed to be completed in November 2016 but was merely about 34.5 percent completed as at June 2018.

Meanwhile, Bintulu-based Harbour-Link Group Bhd’s unit Harbour-Link Navigation Sdn Bhd has acquired the remaining 48 percent equity interest in Harbour Gemini Sdn Bhd from Lui So Lai for RM1.

The acquisition consideration is based on the net tangible liabilities of Harbour Gemini of about RM1.08 million as of
March 31, 2019.

Harbour Gemini, which has now become a wholly-owned subsidiary of Harbour-Link Group, is in ship owning and ship
management  services.

“The acquisition is to facilitate the expansion of the Harbour-Link Group’s operation,” the company said in a filing with Bursa Malaysia.

The group’s business operations cover the shipping and marine segment (comprises of ship owners unit, ship operation unit and agency unit), integrated logistic segment (comprises of transport unit, heavy lifting, equipment sales and rental unit and freight forwarding unit), engineering as well as property
segments.