14 June 2012
Maybank and RHB have emerged as a substantial shareholder in PN 17 Luster Industries Bhd with 5.95% stake after a debt-to-equity conversion as part of debt settlement arrangement
Malayan Banking Bhd (Maybank) has emerged as a substantial shareholder in Luster Industries Bhd with a 5.95% stake in the latter.
The bank told Bursa Malaysia yesterday that it had acquired 64.16 million shares of 10 sen each in Luster.
“The subscription was made pursuant to the exercise of debt to equity conversion in accordance with a debt settlement agreement dated Nov 25, 2011 involving Luster,” it said.
A PN17 company, Luster is an integrated manufacturer of high precision and precision plastic parts and components.
As part of its proposed regularisation plan, Luster is looking to settle RM64.4mil in debt via the issuance of RM17.9mil in loan stocks, 25.4 million new ordinary shares of 10 sen each, and 263.8 million new shares with 131.9 million free detachable warrants.
The shares and warrants were part of an exercise that saw the company issue a total of 834.1 million new shares alongside 441.6 million free detachable warrants.
Luster posted a net loss of RM3.04mil in its first quarter ended March 31, 2012 versus a loss of RM1.96mil in its previous corresponding period. Revenue slipped to RM8.96mil from RM9.51mil previously.
The company said the loss was partly due to the payment of incentives to its employees and a salary adjustment.
Luster said higher overheads were also incurred during the quarter under review to transfer and test the moulds from overseas for new projects of which the mass production was expected to start early June.
On its prospects, Luster said it was still able to maintain its existing customers, which comprise brand owners including multinational companies.
“The management continues to take steps to differentiate the group from its competitors in order to command a stronger and leading position in the market. The board believes that the corporate exercises will position the group well to cater to the burgeoning opportunities in these regions,” it said in its note accompanying its first quarter results.
RHB Bank Bhd has also emerged as a substantial shareholder in PN17 company Luster Industries Bhd with a 5.48% direct stake in the latter.
Filings with Bursa Malaysia showed RHB Bank had acquired 59.15 million shares in Luster on June 11 and their entry into the company was due to a “debt settlement.”
RHB is the third financial institution to report that it had acquired substantial stakes in Luster.
It had been reported on Thursday that Malayan Banking Bhd emerged as a substantial shareholder in Luster with a 5.95% stake due to a “debt to equity conversion” exercise.
CIMB Bank had earlier this month also emerged as a substantial shareholder in Luster with a 5.86% stake or a 63.22 million shares due to a “proposed revised restructuring scheme” by the company.
Luster is a PN17 company and is involved with the manufacturing of high precision and precision plastic parts and components.