(Dated Sept 2011)
A pure plantation player run by Chiong Hoo’s (Tan Sri Tiong Hiew King’s son) older brother Chiong Ong.
It offers plenty of upside, stemming from their large unplanted areas and young palm profiles. Its appeal is its full exposure in the palm oil sector.
It would seem that Tiong is turning Rsawit into the family’s plantation flagship by rapidly expanding its landbank via acquisitions and the injection of family landbank.
Nonetheless, the group’s aggressive building up of plantation landbank resulted in huge net total borrowings of rm427 million against its shareholders funds of rm467 million as at June 30, 2011.
It is proposing a rights issue to pare down its borrowings and for capex needs. The rights issue will keep Tiong’s interest in Raswit at 57.17% stake assuming the rest of the shares are fully subscribed by the other shareholders. Such a move would entitle him to rights and bonus issue. It would also increase his shareholding.
A pure plantation player run by Chiong Hoo’s (Tan Sri Tiong Hiew King’s son) older brother Chiong Ong.
It offers plenty of upside, stemming from their large unplanted areas and young palm profiles. Its appeal is its full exposure in the palm oil sector.
It would seem that Tiong is turning Rsawit into the family’s plantation flagship by rapidly expanding its landbank via acquisitions and the injection of family landbank.
Nonetheless, the group’s aggressive building up of plantation landbank resulted in huge net total borrowings of rm427 million against its shareholders funds of rm467 million as at June 30, 2011.
It is proposing a rights issue to pare down its borrowings and for capex needs. The rights issue will keep Tiong’s interest in Raswit at 57.17% stake assuming the rest of the shares are fully subscribed by the other shareholders. Such a move would entitle him to rights and bonus issue. It would also increase his shareholding.
