PETALING JAYA: I-Berhad plans to make a cash call by raising a minimum of RM100mil under a proposed rights issue of redeemable cumulative convertible preference shares (RCCPS).
The company said it was extending the maturity date of its redeemable convertible unsecured loan stocks (RCULS) of about RM201mil (RCULS extension) maturing on Aug 27, 2019 by three years.
“With the RCULS extension preserving the group’s cash flows and the rights issue raising fresh capital, the group remains steadfast in building up its property investment and hospitality portfolio while also growing its property development segment,” it said.
Recall that I-Berhad had earlier announced plans to build up its investment properties and hospitality portfolio to about RM1bil. This strategy was to provide a strong recurring income stream.
As at end-2018, the group has an investment property and hospitality portfolio worth RM640mil. This comprised the data centre, 7,700 car park bays, the Best Western @ i-City hotel, the i-City Convention Centre and a 40% share of the Central i-City Shopping Centre.
“It is envisaged that over the next five years, this portfolio will increase by up to RM300mil from the development and completion of the Double Tree by Hilton hotel, the associated convention centre, the Grade A, GBI-rated Corporate Office Tower and an additional 3,000 ca park bays,” it said.
I-Berhad executive chairman Tan Sri Lim Kim Hong said with the RM1bil investment property programme on track, “We are gearing ourselves for our next growth trajectory, for which we are putting in place a sustainable funding strategy to realise our vision.”
Under I-Berhad’s rights issue, shareholders would be able to take part in the group’s prospects and future growth while also receiving fixed dividends on the redeemable cumulative convertible preference shares.
The rights issue also strengthened the company’s balance sheet, thereby providing greater financial flexibility.