Sin Chew Daily, 20 August 2011 - Private Placement 30% Equity Stake Raise RM203 million for Development Expansion

Sin Chew Daily, 20 August 2011

Dijaya Corp (DIJAYACOR, 5401, main property stock) suggested a private placement of 30% equity stake or selling a maximum of 177,472,410 million shares to raise RM203.99 million to RM264.43 million in order to buy more land for the company’s property expansion development.

The company pointed out that, in the above private placement plan, the company hopes to sell a minimum of 136,908,254 shares or a maximum of 177,472,410 million shares at the market price of RM1.49 per share as a guide, to be able to raise its minimum sum of RM203.99 million and a maximum sum of RM264.43 million.

The price for the private placement will be decided later after obtaining approval from the Board of Directors, therefore the actual amount which can be raised and the number of shares to be sold will be known only after the price has been fixed.

The company expressed that the private placement of raising funds is to buy more land for the company and also its subsidiary company to develop and expand mixed residential and commercial developments.

This private placement strategy has proven that Dijaya Corp has invested, until 11 August, an amount of RM456.361 million which will be increased to between RM593.269 million (at lowest) and RM769.047 million (at highest).

If there is no obstacle, it is hoped that this plan will, after the approval and launching of the private placement date, be able to complete all the transactions within six months.