04 Aug 15 – Press Release – PUC Founder proposes ICULS to raise fund for 50MW solar power plant project
PUC Founder proposes ICULS to raise fund for the 50MW solar power plant project
PETALING JAYA, 04 Aug 2015 – The Board of Directors of PUC FOUNDER (MSC) BERHAD (“PUCF” or the “Company”), a Bursa Malaysia ACE market listed company (Stock code: 0007) as per Bursa Malaysia announcement today, is proposing the Renounceable Rights Issue of Irredeemable Convertible Unsecured Loan Stocks (“ICULS”) to raise fund for the capital expenditure of the 50 MW power solar PV power project.
The company proposed renounceable rights issue of up to RM127,589,899.80 nominal value of three (3)-year, 4%, ICULS at 100% of the nominal value of RM0.05 each on the basis of two (2) RM0.05 nominal value of the Rights ICULS for every one (1) existing PUCF Share held by the entitled shareholders of PUCF on an Entitlement Date to be determined later together with up to 318,974,750 Warrants-B on the basis of one (1) Warrant-B for every eight (8) Rights ICULS subscribed.
The major shareholder of PUCF, Redhot Media International Limited (“RHIL”) in an Undertaking Letter undertakes to subscribe for RM40,000,000.00 nominal value of Rights ICULS. In order to fulfil this undertaking, apart from the sales proceed of the previous divestment in PUCF, this time, RHIL had invested more into the company and this undertaking shows that the major shareholder is committed and confident on the future planning and development of PUCF’s new business.
Group Managing Director, Mr. Cheong Chia Chieh commented, “We see renewable energy as a very promising business and we aspire to be the biggest player in the region. We will seek approval in the coming EGM to diversify our business into renewable energy sector as we foresee that it may takeover as our core business in the near future.”
“To carry out the 50 MW solar power plant project, we need to locate the suitable land followed by the Power System Study and Feasibility Study. When preparation work is done, we will submit our application to the Sustainable Energy Development Authority.”
Mr. Cheong Chia Chieh also commented, “The proposed Rights Issue of ICULS with Warrants will fund the production of up to 15MW of the solar PV plant while the remaining 35MW will be funded via a mix of internally generated funds and bank borrowings. The Group will also undertake additional bank borrowings to compensate the shortfall of proceeds if the entitled shareholders do not fully subscribe the proposed rights of ICULS.”
The Proposals are expected to be completed by the fourth (4th) quarter of year 2015.
Upon completion of the Proposed Diversification, the Group will be principally involved in the advertising, media brokerage and consultancy, e-payment services, financial services and energy utility services.
On 16 March 2015, PUCF had announced that MaxGreen Energy Sdn Bhd (“MESB”), its wholly owned subsidiary, was awarded a FIT by SEDA to develop and operate a 1MW solar PV plant for a period of twenty one (21) years. Subsequently on 22 June 2015, PUCF had further announced that MESB had on the same day entered into a renewable energy PV purchase agreement (“REPPA”) with Tenaga Nasional Malaysia (“TNB”) for the supply and delivery of the renewable energy from solar PV for a FIT concession period of 21 years. The Group is currently in the midst of constructing the 1MW solar PV plant, which is scheduled to be in operation by fourth (4th) quarter of 2015.