MAINBOARD-LISTED agri-food firm Japfa has proposed to undertake a renounceable non-underwritten rights issue on the basis of one rights share for every 10 existing ordinary shares, at an issue price of S$0.50 for each rights share.At the very least, the rights issue will raise net proceeds of S$67.5 million since Rangi Management, which controls 50.
The 136 million rights shares would include Rangi's full entitlements as well as that of Tasburgh Limited and Tallowe Services Inc, plus up to 22.4 million of any excess rights shares that may be unsubscribed for. Handojo Santosa, Japfa's executive chairman, controls Rangi Management, Tasburgh and Tallowe.The issue price of the rights shares represents a discount of 13 per cent to the closing price of S$0.575 per share on Wednesday, and a discount of 12.