12 Oct 15 – Press Release – PUC Founder proposes revised ICULS scheme

PUC Founder Proposes Revised ICULS Scheme

PETALING JAYA, 12 Oct 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 revised scheme of Renounceable Rights Issue of Irredeemable Convertible Unsecured Loan Stocks (“ICULS”) to raise fund for the capital expenditure of the 9.5 Mega-watt (“MW”) power solar photovoltaic (“PV”) power project.

The revision would entail the proposed renounceable rights issue of up to RM83,901,476.75 nominal value of three (3)-year, 4%, ICULS at 100% of the nominal value of RM0.05 each on the basis of twenty eight (28) RM0.05 nominal value of the Rights ICULS for every twenty (20) existing PUCF Shares held by the Entitled Shareholders of PUCF on an Entitlement Date to be determined later together with up to 419,507,384 Warrants-B on the basis of seven (7) Warrant-B for every twenty eight (28) Rights ICULS subscribed (“Revision”).

Based on the Revision, the Proposed Rights Issue of ICULS with Warrants is expected to raise gross proceeds of approximately RM28.00 million and RM83.90 million under Minimum Subscription Level and Maximum Subscription Level, respectively.

The major shareholder of PUCF, Redhot Media International Limited (“RHIL”) in an Undertaking Letter undertakes to subscribe the Minimum Subscription Level which is RM28,000,000.00 nominal value of Rights ICULS. 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 have revised the ICULS scheme as a result of recent market sentiment which has caused the market price of PUC shares to be volatile. This time, the revision also entails more free Warrant-B attached with the Rights ICULS subscribed.”

“Due to the recent depreciation of the RM to USD, the capital expenditure such as solar panels which are derived based on USD is expected to increase. Taking this into considerations we need to restructure our expansion plans where we opt for a more flexible approach.”

The proposed Rights Issue of ICULS with Warrants will fund the constructions of several solar PV plants ranging from a minimum capacity of 3 MW to a maximum of 9.5 MW.

Mr. Cheong Chia Chieh also commented, “This fund raising exercise would allow the management to secure more power project deals and RE Quotas in the next three years. The management will do it’s best to bring lucrative return to the company and the shareholders.”

The Group will also procure funding through internally generated funds and/or bank borrowings when necessary. The Proposals are expected to be completed by the first (1st) quarter of year 2016.

Background information
Upon completion of the Proposed Diversification, the Group will be principally involved in the advertising, media brokerage and consultancy, 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.

About PUC Founder (MSC) Berhad:

PUC Founder (MSC) Berhad (Stock code: 0007) is an investment holding group, principally engaged in three business segments namely, Media & Advertising; E-payment Services; and Renewable Energy. It was incorporated in Malaysia by China Founder Group on 3rd November 1997 bearing the Company Number 451734-A, and is listed on the ACE Market of Bursa Malaysia on 3rd April 2002. It is one of the first companies in Malaysia to qualify for the Multimedia Super Corridor or MSC status. The company’s businesses have expanded throughout Asia.

Corporate Website: http://www.founder.com.my/