UUE

ACE Market-listed UUE Holdings Bhd has proposed a series of corporate exercises including a bonus issue of shares and free warrants, an employee share option scheme (ESOS), and a diversification into renewable energy as part of a broader plan to enhance shareholder value and tap new growth opportunities.

The company is proposing a bonus issue of up to 304.15 million new shares on the basis of one bonus share for every two existing shares held, and up to 121.66 million free warrants on the basis of one warrant for every five shares held.

The warrants will be issued at no cost, with the exercise price to be determined later. UUE has indicated a potential exercise price of 50 sen, which could raise up to RM60.8 million in gross proceeds if all warrants are exercised.

Proceeds will be used for working capital, including payments to trade creditors, staff expenses, and utilities.

In addition, UUE plans to implement an ESOS of up to 10% of its issued shares.

Based on an indicative option price of 47.32, the company could raise approximately RM48.9 million from full exercise of the options, also to be channelled toward working capital.

UUE is also seeking shareholder approval to diversify into the renewable energy sector via its newly incorporated 60%-owned subsidiary, Enerxite Sdn Bhd.

The unit has already undertaken 22 small-scale solar-related projects worth RM1.9 million, and aims to expand further in solar photovoltaic system development and investments in solar plants.

The group expects the new segment could contribute more than 25% of future net profits or net assets, triggering the requirement for shareholder approval under Bursa Malaysia’s listing rules.

UUE said the diversification aligns with national energy transition efforts and offers long-term growth potential.

Enerxite will be led by CEO Daryl Lai Yit Sheng, who has more than six years of experience in the renewable energy industry.

All proposals are subject to shareholder approval at an upcoming EGM and regulatory clearance from Bursa Securities. — TMR

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