Malaysian investment holding company JAKS Resources Bhd plans to expand its business portfolio into renewable energy (RE) as a new source of income.
The company would be seeking into RE projects mainly in solar and hydropower locally and in Vietnam, Indonesia. At the extraordinary general meeting, its shareholders passed the resolution of the proposed rights issue of up to 278.16 million warrants, on the basis of one warrant for every two existing ordinary shares.
With the indicative issue price of $0.017 per warrant, the gross proceeds to be raised from the proposed rights issue of warrants will come up to approximately 69.5 million ringgit ($16.7 million). JAKS intends to use $10.5 million to further expedite the construction of a coal-fired thermal plant in Vietnam.
The company added that $2.7 million from the $16.7 million will be used for a partial repayment of bank borrowings while $2.4 million is allocated for RE projects. The power plant is set to be completed in the middle of 2020.