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KUALA LUMPUR, (Sept 17): Fututech Bhd's shares fell as much as 4.1% to RM1.45 in the morning trades today, after the company announced a private placement to raise RM150 million for the buyout of two construction firms.
Trading of the shares had been suspended, pending the announcement. When trading resumed, the shares fell to RM1.48.
At 10.25 am, Fututech shares slipped 4% or 6 sen to RM1.45, with 4000 shares done.
To recap, Fututech announced to Bursa Malaysia on Tuesday (Sept 15) that it signed a share sale agreement for the buyout of construction firms kerjaya Prospek (M) Sdn Bhd and Permatang Bakti Sdn Bhd, proposed a private placement to raise RM150 million, based on an indicative issue price of RM1.50.
The proceeds raised from the private placement, according to the group, will be utilised for working capital; while some RM55.2 million will fund the proposed RM458 million acquisition of the two construction companies from its controlling shareholder.
However, Fututech's CEO Evan Loo expects the private placement to be carried out in January next year, after the completion of the proposed acquisition.
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