Ho Hup Construction Co Bhd said its new revamp plan would include issuing more rights shares to raise more money to help develop the 24.3ha plot of land in Bukit Jalil which it won back in a legal tussle recently.
"It (regularisation plan) would be better than what we had proposed earlier," Ho Hup executive director Derek Wong said after the company's annual general meeting Tuesday.
He said the group would finalise the plan in the next two to three weeks and make a submission to Bursa Malaysia.
He did not disclose details of the re-tweaked rights issue, but said other measures proposed earlier would stay the same.
In March this year, the company had proposed several measures to improve its financial position in order to lift the company from its Practice Note 17 (PN17) status.
The proposals included a par value reduction by 50 per cent followed by a rights issue of 51 million new shares with detachable warrants and a private placement to raise proceeds of RM30.6 million.
"Once the plan is announced, we are confident that we would be out of the PN17 status latest by end of the year," he added.
Ho Hup had been working to regularise its financial condition since being listed as a PN17 company in July 2008.
After more than a year of litigation, the Kuala Lumpur High Court ruled in favour of Ho Hup on June 7 by declaring null and void a joint development agreement between the latter's 70 per cent owned subsidiary, Bukit Jalil Development Sdn Bhd, and Pioneer Haven Sdn Bhd, a wholly-owned unit of Malton Bhd.
The finalisation of the court decision would enable Ho Hup to proceed with its financial regularisation plan, which had been delayed pending the outcome of the suit.
He said the company wants to be a significant property player and is focused on developing the land in Bukit Jalil into a commercial success.
Ho Hup plans to develop the land with a gross development value of RM4 billion-RM5 billion on its own.
It plans to rely on borrowings and a proposed rights issue for financing.
"The plan involves nine million sq ft of net saleable area with another two million sq ft of car park space," said Wong.
The first phase of the project valued around RM700 million- RM800 million is expected to be launched by year-end. – Business Times
