Saturday, August 14, 2010

Time Engineering disposes of 22.18m Time dotCom shares

KUALA LUMPUR: TIME ENGINEERING BHD [] had further disposed of 22.18 million shares in TIME DOTCOM BHD [] (TdC) or 0.88% in the open market for RM14.38 million.

Time Engineering said on Friday, Aug 13 the shares disposed were part of the shares which it held and had been pledged to Bank Pembangunan Malaysia Bhd. It did not state the time frame of the disposals.

It added the pledged shares were as security for the 712.5 million redeemable secured loan stocks (RSLS) at nominal value of 48 sen each issued to Bank Pembangunan on June 11, 2009.

"The disposal proceeds will be paid to Bank Pembangunan for the redemption of the RSLS. Pursuant to the disposal transaction, the company's shareholding in TdC had been reduced to 24.95%," it said.

Time Engineering said the disposal was undertaken in accordance with the shareholders' mandate obtained at the company's EGM held on Aug 21, 2009.

"The proceeds received from the Disposal Transaction will first be paid to Bank Pembangunan for any redemption of the RSLS. Upon full redemption of the RSLS, any excess proceeds received would be utilised for working capital purposes of the
company," it said.

Time Engineering said it registered RM3.73 million gain from the disposal for the financial year ending Dec 31, 2010 and the interest savings arising from the early redemption of part of the RSLS via the proceeds will enable it to reduce its interest expense on the RSLS of about RM290,000 per annum.


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