KUALA LUMPUR, Oct 12 — Eastland Equity Bhd has proposed to undertake a renounceable rights issue of new ordinary shares with free detachable warrants to the entitled shareholders to raise gross proceeds of approximately RM80 million.

In a filing with Bursa Malaysia today, the diversified group said the entitlement date for the exercise will be determined and announced later.

It noted that proceeds from the proposed rights Issue with warrants are intended to repay up to RM40.0 million of the group’s bank borrowings.

"The board is of the opinion that the proposed rights issue with warrants will reduce the interest expenses of the group by approximately RM2.35 million, and substantially reduce the group’s borrowings and liabilities,” it said.

The reduction of Eastland’s gearing from the proceeds of the proposal and the surplus to be raised, if any, will enable the group to be ready to capitalise on any business opportunities which may arise once the economic activities recover, it said. — Bernama