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Saturday, March 13, 2010

Encorp proposes to raise RM134mil

KUALA LUMPUR: Encorp Bhd announced yesterday that it plans to raise RM134.1mil for new projects and working capital.

In a filing with Bursa Malaysia, Encorp said it proposed to make a renounceable rights issue and a placement to identified investors of up to RM134.1mil of nominal value five-year 6% redeemable convertible secured loan stocks (RCSLS) at RM1 each.

A free detachable warrant will be given for every two RCSLS. The coupon rate of RCSLS is payable on a quarterly basis. The RCSLS is convertible into fully paid new Encorp shares during the conversion period, with an option for RCSLS holders to require Encorp to redeem part or all outstanding units at the end of the third year.

Datuk Seri Effendi Norwawi … ‘We will continue on the success of our current flagship development at Encorp Strand.’

Chairman Datuk Seri Effendi Norwawi said in a statement that the RSCLS would allow shareholders to increase their equity and participation in the company’s future growth.

On new projects, he said: “We will continue on the success of our current flagship development at Encorp Strand, Kota Damansara, for which buyers have enjoyed high capital appreciation from a distinctive project concept, innovative design, quality finishes and timely delivery.”

He said Encorp aimed to incorporate the latest ideas and technology to create excellent value for customers.

Effendi said the company was encouraged that two of its latest products – Garden Office @ Encorp Strand and Camelia in Cahaya Alam – respectively were already 71% and 91% sold just from soft launches.

“The next two to five years will see the completion of more features in Encorp Strand to make it the most vibrant commercial development in Petaling Jaya,” he said.

Encorp’s property projects have a combined gross development value of RM2bil, while its construction division currently has booked work amounting to RM1.6bil.

Encorp’s business expansion follows Effendi’s return to the private sector in September 2009 to lead the company, after holding several ministerial positions.

Effendi said he had set high challenges and benchmarks for his team to focus on achieving highest quality, standards, value and service (QSVS).

“Internally, we are aligning all efforts to our common vision for Encorp to be a frontrunner in providing QSVS unrivalled by others. If you buy an Encorp product, you are guaranteed QSVS,” he said, adding that the new focus had resulted in a thorough review of processes to match and exceed industry standards.

“These have included a re-look at designs to make future projects more unique and innovative to give customers exciting and value-for-money products,” Effendi said.

Similarly, the incorporation of new systems had enabled online tracking of construction progress to ensure Encorp delivered on time or ahead of schedule, while running at optimal cost and providing excellent quality, he added.

By The Star

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