Proposed public issue to raise minimum proceeds of RM242mil

PETALING JAYA: Eastern & Oriental Bhd (E&O), which reported a 22.6% rise in net profit to RM23.3mil in the first quarter ended June 30, is planning to list its UK-based property unit on the Alternative Investment Market (AIM) of the London Stock Exchange.

The proposed public issue of E&O plc is expected to raise minimum gross proceeds of £36mil (RM241.5mil), which would be utilised for debt repayment to E&O Property Development Bhd, property development expenditure, as well as working capital, investments and acquisitions.

In a filings with Bursa Malaysia, the lifestyle property developer said the proposed listing of E&O PLC on AIM would involve proposed placings, a restricted offer and offer for sale of up to 250.99 million shares, or approximately 70% of the enlarged issued and paid-up share capital of the company, with matching warrants.

This proposed global offer would comprise a proposed public issue and the proposed offer for sale.

The group said that the issue price per initial public offering share and the exercise price per warrant would be determined at a later date.

The proposals are expected to be completed by the fourth quarter of 2015 or the first quarter of 2016.

E&O PLC’s assets are invested through its subsidiaries, namely, Hammersmith Properties Ltd, Hammersmith Development (UK) Ltd and Loxley Holdings Management Ltd.

E&O PLC and its subsidiaries would be redeveloping three real estate properties in London, being Landmark House and Thames Tower, which are located in Hammersmith, West London, and ESCA House, which is located in the Bayswater area of West London, subject to it obtaining relevant planning consents from the relevant authorities.

Separately, E&O announced yesterday that its net profit had risen 22.6% to RM23.3mil in the first quarter from RM18.96mil a year ago, driven by the share of results of an associate, despite lower revenue.

The group’s revenue fell 47% to RM68.89mil from RM129.74mil a year ago. Its earnings per share rose to 1.90 sen for the quarter in review from 1.56 sen in the previous corresponding period.

“The decrease in revenue is due to lower revenue recognition, following the completion of two blocks of the Quayside Andaman Condominium in Seri Tanjung Pinang in the previous financial year,” the company said.