It told Bursa Malaysia yesterday that it intended to raise total gross proceeds of RM178.39mil to RM182.10mil from the proposed renounceable rights issue of up to 479.198 million new redeemable convertible non-cumulative preference shares (RCPS) of 10 sen each, on the basis of two RCPS for every five shares held after the proposed bonus issue.

“The enlarged issued and paid-up share capital of RCE after the proposed bonus issue based on the minimum bonus issue scenario and maximum bonus issue scenario is RM117.36mil comprising 1.17 billion shares and RM119.80mil comprising 1.20 billion shares respectively,” it said.

As at Dec 31, 2011, RCE’s total borrowings, including hire purchase payables, amounted to RM829mil.

The company has also proposed a bonus issue involving the issuance of up to 399.33 million new ordinary shares of 10 sen each on the basis of one bonus share for every two existing ordinary shares of 10 sen each, held by the shareholders of RCE whose names appear in the Record of Depositors of the company at the close of business on an entitlement date to be determined and announced later.

Separately, RCE has also proposed an exemption for major shareholder Cempaka Empayar Sdn Bhd which has a 43.38% stake, and persons acting in concert with Cempaka from the obligation to undertake a take-over offer for all the remaining shares not owned by them.