Silver Bird on a silver platter?
TigerTalkPublished: Oct 15, 2013 10:52 AM | Updated: Oct 16, 2013 12:12 AM
KINIBIZ Between prowling for career opportunities in the corporate jungle, volunteering for the public good and being inspired by the absurdities of our politics, an animal's got to eat, and Tiger is a big eater, mind you.
Tiger isn't picky, but it prefers hunting larger animals - being efficient with its energy and hunting time and all that. But sometimes Tiger craves a good bird or two to clean its magnificent teeth with, and on those days Tiger thinks of breadmaker Silver Bird Group.
Jungle hawks would remember that in late July, Silver Bird informed Bursa Malaysia that it found two parties willing to provide funding to the tune of RM16 million.
In exchange for the RM16 million, the two parties - Sunsci Holdings Sdn Bhd and Covenant Equity Consulting Sdn Bhd - would effectively get, among other things, redeemable preference shares (RPS) exchangeable with restructured Silver Bird shares with free detachable warrants on the basis of 10 Silver Bird shares plus 20 free warrants for every RM1 outstanding RPS plus dividend.
Sunsci and Covenant Equity also get the option to acquire 40% of Silver Bird's enlarged share capital over the next three years. If the company makes an audited profit before tax (PBT) of at least RM5 million, the investors get a 10% cut, plus an extra 5% if the consolidated audited PBT is more than RM10 million - incentives and rewards for their investment and efforts to turn the company around.
Bearing in mind that Silver Bird has been struggling to make some dough for a while, this is great news for its shareholders because, in the company's own words, "the funding is necessary for the group to immediately start to implement its business turnaround plans".
Okay, so these investors put in money and effort to turn things around and in exchange they get these monetary rewards. Fair enough.
Or so Tiger thought, until another Bursa filing earlier this month shed light on something the company apparently ‘forgot' to mention about the deal.
Go to KiniBiz for more.
This article was written by Khairie Hisyam.
Tiger isn't picky, but it prefers hunting larger animals - being efficient with its energy and hunting time and all that. But sometimes Tiger craves a good bird or two to clean its magnificent teeth with, and on those days Tiger thinks of breadmaker Silver Bird Group.
Jungle hawks would remember that in late July, Silver Bird informed Bursa Malaysia that it found two parties willing to provide funding to the tune of RM16 million.
In exchange for the RM16 million, the two parties - Sunsci Holdings Sdn Bhd and Covenant Equity Consulting Sdn Bhd - would effectively get, among other things, redeemable preference shares (RPS) exchangeable with restructured Silver Bird shares with free detachable warrants on the basis of 10 Silver Bird shares plus 20 free warrants for every RM1 outstanding RPS plus dividend.
Sunsci and Covenant Equity also get the option to acquire 40% of Silver Bird's enlarged share capital over the next three years. If the company makes an audited profit before tax (PBT) of at least RM5 million, the investors get a 10% cut, plus an extra 5% if the consolidated audited PBT is more than RM10 million - incentives and rewards for their investment and efforts to turn the company around.
Bearing in mind that Silver Bird has been struggling to make some dough for a while, this is great news for its shareholders because, in the company's own words, "the funding is necessary for the group to immediately start to implement its business turnaround plans".
Okay, so these investors put in money and effort to turn things around and in exchange they get these monetary rewards. Fair enough.
Or so Tiger thought, until another Bursa filing earlier this month shed light on something the company apparently ‘forgot' to mention about the deal.
Go to KiniBiz for more.
This article was written by Khairie Hisyam.
View Comments0