Censof raises RM33m from sale of DNeX shares
Published on: Wednesday, August 24, 2016
Kuala Lumpur: Censof Holdings Bhd has raised gross proceeds of RM33.7 million from the sale of Dagang Nexchange Bhd (DNeX) shares and warrants.In a statement Tuesday, it said, compared to its cost of investment for the 123.78 million DNeX shares of RM26 million, the sale resulted in net proceeds of RM7.7 million.It said the amount raised will be used to pare down the group's borrowings.ADVERTISEMENT Censof said under the DNeX rights issue, which was completed on Aug 3, 2016, it had fully subscribed for its entitlement of 182.47 million DNeX shares for 21 sen each and had obtained 182.47 DNeX warrants for free."The subscription of the rights entitlement totalling RM38.3 million was financed through short-term bank borrowings," it said. It said since the completion of the DNeX rights issue, Censof has disposed of part of the DNeX shares subscribed in the rights issue, amounting to 123,78 million shares and its entire holdings 182.47 million warrants.Group Managing Director, Ameer Shaik Mydin, said this was a logical move as the disposal will strengthen the balance sheet of the group.ADVERTISEMENT "Our gross gearing level will reduce to 0.55 time from 0.65 time as at March 31, 2016. The group will also save on interest charges," he said.
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The disposal of DNeX shares, which represented a 7.3 per cent shareholding in DNeX, was to Arcadia Acres Sdn Bhd, he said.Stay up-to-date by following Daily Express’s Telegram channel.
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Arcadia is an investment holding vehicle which is 78 per cent owned by Zainal Abidin Jalil, Group Managing Director of DNeX, and 22 per cent owned by Wan Azryn Wan Ab Rashid, Chief Executive Officer of DNeX Oilfield Services Sdn Bhd.Censof said post-transaction, it will remain the single largest shareholder of DNeX with a 21.33 per cent stake. – Bernama