KUALA LUMPUR: Sentoria Group Bhd has secured shareholders' mandate for its redeemable convertible bond (RCB) issuance to be undertaken together with a shares consolidation exercise.
Almost 99.9 per cent of eligible registered shareholders, including the Pahang state investment arm, Sentoria's second-largest shareholder, provided overwhelming support.
Sentoria said this represented a resounding vote of confidence in its rejuvenation efforts.
It added that following Bursa Malaysia's conditional approval last month, the successful resolution propels Sentoria forward to initiate its first issuance of the three-tranche structured RCB, in compliance with regulatory standards.
Sentoria group chief executive officer Datuk Loh Yuen Tuck said the company is amid a massive and significant corporate turnaround.
"The RCB plays a critical role in reviving the group's cash-flows, honour its commitment to banks, expedite the completion of housing projects in Morib Bay, Selangor and rejuvenation of its theme parks through strategic partnerships.
"The RCB approval enables Sentoria to honour its commitment to buyers of Sentoria homes, deal with legacy issues arising from outstanding loans from banks, finance new projects in Morib, revive its theme-park operations in Gambang Pahang and Samariang Sarawak.
"This will enhance property values, delivering sustainable returns to shareholders and fair return to banks supporting Sentoria," he said in a statement.
The RCB issuance, complemented by a share consolidation exercise of four to one, underscores Sentoria's commitment to financial flexibility and disciplined management.
Upon this share consolidation exercise, the RCB is issued to an identified subscriber namely Triton Capital VCC Singapore, which the principal advisers have structured that the RCB is convertible to a maximum new ordinary share of 306.69 million.
These new converted SGB shares are in addition to the Sentoria consolidated shares of 155.74 million including treasury shares.
The infusion of RM150 million funds will support development initiatives, improve cash flows, reduce bank borrowings and bolster working capital, all vital components of Sentoria's strategic turnaround.
