PETALING JAYA: EASTLAND EQUITY BHD has proposed to undertake a renounceable rights issue with free detachable warrants to raise up to RM80mil.

       In its filings with Bursa Malaysia, the hospitality and property investment company said proceeds from the exercise are intended to repay up to RM40mil of the group’s bank borrowings. The issue price and entitlement date for the exercise would be determined and announced later.

       Based on an illustrative issue price of 8.5 sen per right share on the basis of nine rights shares for every four existing Eastland shares and six warrants for every nine rights shares subscribed, the exercise is expected to raise a minimum of RM8mil and maximum of RM80mil, it said, noting the illustrative exercise price is 11 sen per warrant.