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I thought OMH mentioned that they have secured 75% of project finance from banks, the other 25% of course will come from equity injection.

I agree the OMH project may turn out to be a dud. But as long as Boustead does not pump in substantial sums of money, I would not panic unnecessarily over this. The rest of the business is well-managed.

I would have expected that during OMH strategy presentation to Boustead as a potential major corporate shareholder would have informed them of the intention for rights issue in the future. We should not use our ill-feelings towards rights issue as public investors to justify the same conclusion as how the corporates would look at it.

http://www.starproperty.my/PropertyScene.../24501/0/0

Six banks to fund RM1.87bil ferro-alloy plant in Bintulu park

KUCHING: Six banks, including Malaysian ones, have to date indicated their participation to fund OM Materials (Sarawak) Sdn Bhd’s (OM Sarawak) US$592mil (RM1.87bil) ferro-alloy smelting project in Samalaju Industrial Park in Bintulu.

Standard Chartered Bank (Stanchart), Chinese and international banks are among the banks. Stanchart is the smelting project’s financial advisor.

A detailed memorandum on the project prepared by Stanchart and OM Holdings Ltd (OMH), which has a 80% stake in the joint-venture project with Cahya Mata Sarawak Bhd (CMSB), was dispatched to prospective lenders early last month.

“The funding participation amounts (from the six banks) collectively exceed the project’s debt funding requirements,” OMH said when announcing its plan to raise up to A$72.5mil through equity to fund the Sarawak project.

OMH told the Australian Stock Exchange last week that the fund raising consisted of a 3-for-10 non-renounceable pro-rata entitlement offer of new ordinary shares to its eligible shareholders at A$0.40 each.

Interesting article. However, the article did not mention if the banks will collectively lend to the project company if the project company can't raise the required 30% equity.

Given OMH is trading below the intended rights issue price, will OMH be able to raise the much needed equity to kick start the project or will the banks be eager to lend to the project company whatever it needs?

(03-09-2012, 06:16 PM)Contrarian Wrote: [ -> ]http://www.starproperty.my/PropertyScene.../24501/0/0

Six banks to fund RM1.87bil ferro-alloy plant in Bintulu park

KUCHING: Six banks, including Malaysian ones, have to date indicated their participation to fund OM Materials (Sarawak) Sdn Bhd’s (OM Sarawak) US$592mil (RM1.87bil) ferro-alloy smelting project in Samalaju Industrial Park in Bintulu.

Standard Chartered Bank (Stanchart), Chinese and international banks are among the banks. Stanchart is the smelting project’s financial advisor.

A detailed memorandum on the project prepared by Stanchart and OM Holdings Ltd (OMH), which has a 80% stake in the joint-venture project with Cahya Mata Sarawak Bhd (CMSB), was dispatched to prospective lenders early last month.

“The funding participation amounts (from the six banks) collectively exceed the project’s debt funding requirements,” OMH said when announcing its plan to raise up to A$72.5mil through equity to fund the Sarawak project.

OMH told the Australian Stock Exchange last week that the fund raising consisted of a 3-for-10 non-renounceable pro-rata entitlement offer of new ordinary shares to its eligible shareholders at A$0.40 each.

OMH price 33c, turning 'gem' turning to dust ? just like their investment in Hankore

Latest update from OMH. So far, things are proceeding according to plan....

http://www.asx.com.au/asxpdf/20120926/pd...rs4gzb.pdf

Sounds like more trouble brewing for Boustead! (Vested)

The Straits Times
www.straitstimes.com
Published on Oct 03, 2012
Boustead faces new Arab Banking suit

BOUSTEAD Singapore said yesterday that it will defend itself vigorously against a new lawsuit brought against it by the Arab Banking Corp, in a year-long legal tussle that involves bank guarantees provided by Boustead in Libya before last year's civil war.

The Arab Banking Corp wants the Singapore High Court to award it US$18.78 million (S$23 million) under some counter-guarantees and a facility agreement, plus interest on the amount and costs.

The High Court granted an interim injunction against the Arab Banking Corp on Aug 30, restraining the bank from paying out money under the counter-guarantees and placing restrictions on renewing or extending their period of validity.

The legal tussles between Boustead and the Arab Banking Corp started in June last year, and have featured suits and counter-suits by both parties.

Essentially, Boustead wants its guarantees in Libya to be cancelled, after it evacuated its staff and ceased operations there, following an outbreak of civil war last year that toppled the Muammar Gaddafi regime.

The Arab Banking Corp does not want Boustead to be released from the guarantees, arguing that it should pay up.

The guarantees had been provided by Boustead and issued through the Arab Banking Corp to Libya's Bank of Commerce and Development.

The counter-guarantees were for a bond issued by the Bank of Commerce and Development to a body which awarded a contract to a joint venture involving Boustead.

The joint venture had won the $300 million contract to build a new township in the municipality of Al Marj in Libya.

Boustead said in February last year that the joint venture was being restructured where its interest in the contract would be reduced, with its partner taking the lead in completing the project.

Boustead shares rose half a cent to 97 cents. The announcement was made after the market closed.

JONATHAN KWOK

(03-10-2012, 07:37 AM)Musicwhiz Wrote: [ -> ]Sounds like more trouble brewing for Boustead! (Vested)

The Straits Times
www.straitstimes.com
Published on Oct 03, 2012
Boustead faces new Arab Banking suit

BOUSTEAD Singapore said yesterday that it will defend itself vigorously against a new lawsuit brought against it by the Arab Banking Corp, in a year-long legal tussle that involves bank guarantees provided by Boustead in Libya before last year's civil war.

The Arab Banking Corp wants the Singapore High Court to award it US$18.78 million (S$23 million) under some counter-guarantees and a facility agreement, plus interest on the amount and costs.

The High Court granted an interim injunction against the Arab Banking Corp on Aug 30, restraining the bank from paying out money under the counter-guarantees and placing restrictions on renewing or extending their period of validity.

4 million shares trade today, likely due to this piece of news. I don't mind if victory for Arab Banking Corp means a 15 cents drop in boustead share price

(vested)

(03-10-2012, 05:13 PM)shanrui_91 Wrote: [ -> ]4 million shares trade today, likely due to this piece of news. I don't mind if victory for Arab Banking Corp means a 15 cents drop in boustead share price

(vested)

I won't mind either, but apparently Boustead shareholders are not as panicky as we'd hope!