Tuesday, December 14, 2010

#Flash* KL Kepong to pay RM209.8m to subscribe for Yule Catto's rights

KUALA LUMPUR: KUALA LUMPUR KEPONG BHD [] (KLK) will fork out ''42.4 million or RM209.8 million for its entitlement in the rights issue undertaken by its 18.82% owned Yule Catto.

Yule Catto, which is listed on the London Stock Exchange, is raising funds to acquire PolymerLatex Group, a European emulsion polymer products manufacturer with assets in Europe and Asia, for '443 million (''376 million).

'The acquisition will be financed by Yule Catto via a combination of a rights issue to raise approximately ''225 million and bank borrowings for the remaining balance of the purchase consideration,' KLK said on Tuesday, Dec 14.

Yule Catto has announced an underwritten rights issue of four new ordinary shares for each three existing shares held, at an issue price of 116 pence per share (the closing market price for Yule Catto shares on Friday, 10 December 2010 was 260 pence).

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