The short term boost to Ramunia’s share price will help jump start the company’s proposed fundraising exercise, which is crucial to its bid to secure a rm170 million contract from oil major Shell. Sources say that Ramunia has received a notice for a LOL from Shell for fabrication works. However, the offer could be conditional upon Ramunia possessing its own fabrication yard. With this in the pipeline, Ramunia will have to expedite its acquisition of the fabrication yard in Pulau Indah from Oilfab Sdn Bhd, a 51% subsidiary of Oilcorp Bhd.
Thus the proposed rights issue is essential to raise cash. Ramunia has offered to acquire the Pulau Indah Integrated Fabrication Yard for rm84 million of which rm44 million will be paid in cash and rm40 million through a share issuance. Ramunia is currently leasing the yard from Pulau Indah.
Ramunia’s gearing is rather high at 0.98 times and the company still has long term borrowings of rm201 million after sizeable divestment. In addition, the company’s accumulated losses amounted to rm274 million as at Dec 31, 2011 even after disposing fabrication yard to Sime Darby for rm515 million cash in 2009.
Given the high gearing ratio, Ramunia needs to make a cash call as it might have difficulty raising borrowings. Ramunia was categorized as a PN17 firm in Feb 2010 because its shareholders’ funds on a consolidated basis was less than 50% of its issued and paid up share capital. Under its proposed regularization plan, Ramunia will undertake a two for five renounceable rights issue at 0.40 per share following the proposed change in par value to 25 sen from 50 sen per share. Bursa Malaysia approved the plan in Jan 2012.
Thus the proposed rights issue is essential to raise cash. Ramunia has offered to acquire the Pulau Indah Integrated Fabrication Yard for rm84 million of which rm44 million will be paid in cash and rm40 million through a share issuance. Ramunia is currently leasing the yard from Pulau Indah.
Ramunia’s gearing is rather high at 0.98 times and the company still has long term borrowings of rm201 million after sizeable divestment. In addition, the company’s accumulated losses amounted to rm274 million as at Dec 31, 2011 even after disposing fabrication yard to Sime Darby for rm515 million cash in 2009.
Given the high gearing ratio, Ramunia needs to make a cash call as it might have difficulty raising borrowings. Ramunia was categorized as a PN17 firm in Feb 2010 because its shareholders’ funds on a consolidated basis was less than 50% of its issued and paid up share capital. Under its proposed regularization plan, Ramunia will undertake a two for five renounceable rights issue at 0.40 per share following the proposed change in par value to 25 sen from 50 sen per share. Bursa Malaysia approved the plan in Jan 2012.
No comments:
Post a Comment