PETALING JAYA: UMW Holdings Bhd's share price fell 7.55% this morning after it proposed a rights issue exercise to raise up to RM1.1 billion to fund its take over offer for MBM Resources Bhd.
At 10.53am, UMW was trading at RM6 per share with 1.7 million shares changing hands. It was the third loser on Bursa Malaysia Securities Bhd.
It told the stock exchange that proceeds from the rights issue of new shares will be used to primarily repay a bridging facility to be obtained by the group to finance the proposed acquisition of all MBM Resources shares.
It will also be utilised for working capital of the enlarged UMW group.