S’pore GLC buys into Ramunia?

S’pore GLC buys into Ramunia?

KUALA LUMPUR: Ramunia Holdings Bhd saw a block of 22 million irredeemable convertible unsecured loan stocks (ICULS) changing hands last Thursday, which may have been taken up by a Singapore government-linked company (GLC).

Sources said the block, which is convertible for 22 million shares at RM1 per share, would represent 4.5% of Ramunia’s enlarged paid-up capital upon the full conversion of the RM82 million outstanding three-year 1% 50 sen ICULS, which will be maturing on Dec 21.

Last Friday, Ramunia’s share price closed at RM1.14, with a total of 5.45 million shares done, while Ramunia-LA, the ICULS, closed at RM1.04, with 1.19 million units traded.

The stock has attracted investors’ attention over the past one week as its share price had risen 12.87% over the past five days on the back of a 171.9% increase in the past five-day average volume over the past 20-day average volume. (See page 28, Rising price on rising volume table)

Ramunia announced last Monday that the trading of the ICULS would be suspended on Dec 5 in order to facilitate the conversion of the ICULS arising from the maturity, on the basis one ICULS for one share.

The sources said upon conversion of the 22 million ICULS, the Singapore GLC could end up being the largest institutional shareholder in the company, albeit not a substantial one.

At present, Lembaga Tabung Haji (LTH) is the largest institutional shareholder, and would cease to be a substantial shareholder due to the dilution. Earlier this month, LTH bought 677,400 shares in Ramunia to bring its stake to 5.29% comprising 17.18 million shares in the company.

The source said the acquisition by a foreign GLC represented a vote of confidence on Ramunia, particularly after its out-of-court settlement with Carigali-PTTEPI Operating Company Sdn Bhd (CPOC) of between US$6 million (RM20.28 million) and US$8 million for sums invoiced on work done at the JDA Block B-17 in the Thai-Malaysia Joint Development Area.

A source said Ramunia was expected to complete its yard upgrading by the first quarter of next year, paving the way for the company to undertake heavier and more complex structures.

The source said Ramunia was bidding for one local and an nternational project in India worth some US$400 million with an expected tentative award to be known as early as next week for both.



Source = http://www.theedgedaily.com/cms/content.jsp?id=com.tms.cms.article.Article_55f12241-cb73c03a-1d4d4930-150c8b8b