INVESTMENT BANK BERHAD

Registration No. 197401003530 (20657-W)

DEFINITIONS

In this Circular, unless otherwise indicated, the following words and abbreviations shall have the following meanings:-

"2020 Bidding"

:

SEDA's electronic bidding which was held from 9 June 2020 to 23 June 2020

"2021 Bidding"

:

SEDA's electronic bidding which was held from 8 June 2021 to 29 June 2021

"Ban-Seng"

:

Ban-Seng Packaging Sdn. Bhd. [Registration No.: 199601036781 (409134-

T)]

"Board"

:

Board of Directors of GCAP

"Bursa Depository"

:

Bursa Malaysia Depository Sdn Bhd [Registration No.: 198701006854

(165570-W)]

"Bursa Securities"

:

Bursa Malaysia Securities Berhad [Registration No.: 200301033577 (635998-

W)]

"Circular"

:

This circular dated 4 April 2022 to the shareholders of GCAP in relation to

the Proposed Rights Issue

"CMSA"

:

Capital Markets & Services Act, 2007

"COP21"

:

21st Conference of Parties

"Conversion Price"

:

RM0.90, being the conversion price for one (1) new GCAP Share

"COVID-19"

:

Coronavirus disease 2019

"E&E"

:

Electrical and electronics

"EGM"

:

Extraordinary general meeting

"Entitled Shareholders"

:

Shareholders of GCAP whose name appear in the Record of Depositors at the

close of business on the Entitlement Date

"Entitlement Date"

:

The date to be determined and announced by the Board after the approvals

from the relevant authorities and shareholders of the Company have been

obtained, for the purpose of determining the entitlements of the shareholders

of GCAP for the Proposed Rights Issue

"EPS"

:

Earnings per Share

"ESOS"

:

GCAP's employees share option scheme

"Excess Application"

:

The excess application for unsubscribed RCULS by the Entitled Shareholders

and/or their renouncee(s)/transferee(s)

"FiAH"

:

Feed-In-Approval Holder of a feed-in approval certificate issued by SEDA

who is eligible to sell the renewable energy at the FiT

"FiT"

:

Feed-in tariff

"FYE"

:

12-month financial year ended/ending 31 December

"GCAP" or the

:

G Capital Berhad [Registration No.: 199501000977 (330171-P)]

"Company"

"GCAP Group" or the

:

GCAP and its subsidiaries, collectively

"Group"

"GCAP Share(s)" or

:

Ordinary share(s) in the Company

"Share(s)"

"GDP"

:

Gross domestic product

i

"GHSB"

:

Gunung Hydropower Sdn Bhd [Registration No.: 200001010548(513154-

T)], an effective 96%-owned subsidiary of GCAP through GCAP's 90%

direct equity interest in GHSB and PHREC's 10% direct equity interest in

GHSB

"Government"

:

Government of Malaysia

"GW"

:

Gigawatts

"GWh"

:

GW-hours

"KAF IB"

:

KAF Investment Bank Berhad [Registration No.: 197401003530 (20657-W)]

"KHSB"

:

Kundur Hydro R E Sdn Bhd [Registration No.: 201401008223(1084301-M)],

an effective 74.64%-owned subsidiary of GCAP through GCAP's 49% direct

equity interest in KHSB and PHREC's 46% direct equity interest in KHSB

"LAT"

:

Loss after taxation

"Listing Requirements"

:

Main Market Listing Requirements of Bursa Securities

"LPD"

:

28 March 2022, being the latest practicable date prior to the printing of this

Circular

"LSS"

:

Large-Scale Solar

"MMSCFD"

:

Million standard cubic feet per day

"Maximum Scenario"

:

"Maximum Subscription

:

Level"

"MCO"

:

"Minimum Scenario"

:

"Minimum Subscription

:

Level"

"MW"

:

"NA"

:

"NEM"

:

"PAT"

:

"Perak"

:

"PHREC"

:

  • (i) Assuming that the Proposed Rights Issue is implemented based on the Maximum Subscription Level basis where all the Entitled Shareholders and/or their renouncee(s)/transferee(s) will fully subscribe for their respective entitlements under the Proposed Rights Issue; and

  • (ii) RM102,621,111 nominal value of 1,282,763,884 RCULS to be issued under the Maximum Subscription Level will be fully converted into 1,282,763,884 new GCAP Shares by surrendering RM0.08 nominal value of one (1) RCULS together with RM0.82 in cash

The maximum subscription level basis of RM102,621,111 nominal value of 1,282,763,884 RCULS that may be issued under the Proposed Rights Issue

Movement control order

  • (i) Assuming that the Proposed Rights Issue is implemented based on the Minimum Subscription Level basis; and

  • (ii) RM41,784,000 nominal value of 522,300,000 RCULS to be issued under the Minimum Subscription Level will be fully converted into 522,300,000 new GCAP Shares by surrendering RM0.08 nominal value of one (1) RCULS together with RM0.82 in cash

The minimum subscription level basis of RM41,784,000 nominal value of 522,300,000 RCULS that may be issued under the Proposed Rights Issue

Megawatts

Net assets

Net Energy Metering

Profit after taxation

Perak Darul Ridzuan

Perak Hydro Renewable Energy Corporation Sdn. Bhd. [Registration No.: 201001024228 (908000-H)], a 60%-owned subsidiary of GCAP

ii

"PPAs"

  • : Solar power purchase agreements

    "Project Company(ies)"

  • : Separate entities jointly established by PHREC with the strategic partners identified for the purpose of undertaking the development of the mini-hydropower plants pursuant to the WRA

    "Project Costs"

  • : Being the estimated costs associated with the design, construction and installation of Solar PV System projects and the development of mini-hydropower plants projects secured/to be secured by the GCAP Group as more particularly set out in Section 3 of this Circular

    "Proposed Rights Issue"

  • : Proposed renounceable rights issue of up to RM102,621,111 nominal value of 1,282,763,884 RCULS at 100% of its nominal value of RM0.08 each on the basis of four (4) RCULS for every one (1) GCAP Share held by the Entitled Shareholders on the Entitlement Date

    "RCULS"

  • : Five (5)-year, 5.0%, redeemable convertible unsecured loan stocks to be issued by the Company pursuant to the Proposed Rights Issue

    "Record of Depositors"

  • : A record of depositors established by Bursa Depository under the Rules of Bursa Depository

    "REPPA"

  • : Renewable Energy Power Purchase Agreement

    "RM" and "sen"

  • : Ringgit Malaysia and sen, respectively

    "Rules"

  • : Rules on Take-Overs, Mergers and Compulsory Acquisitions issued by the SC

    "Rules of Bursa Depository"

  • : The rules of Bursa Depository as issued pursuant to the Securities Industry (Central Depositories) Act, 1991 as amended from time to time

    "Sanwa"

  • : Percetakan Sanwa Industries Sdn. Bhd. [Registration No.: 199901010307 (485207-M)]

    "SC"

  • : Securities Commission Malaysia

    "SEDA"

  • : Sustainable Energy Development Authority Malaysia

    "Solar PV System"

  • : Solar photovoltaic energy generating system

    "TNB"

  • : Tenaga Nasional Berhad [Registration No.: 199001009294 (200866-W)]

    "Trust Deed"

  • : The RCULS will be issued in registered form and constituted by a trust deed to be executed by the Company and a trustee to be appointed acting for the benefits of the RCULS holders

    "Undertakings"

  • : Irrevocable and unconditional written undertakings dated 25 June 2021 from the Undertaking Shareholders to subscribe in full for their respective entitlements to the RCULS and additional RCULS under Excess Applications, where relevant, under the Proposed Rights Issue

    "Undertaking Shareholders"

  • : Collectively, Ban-Seng, Datuk Yap Yee Ping, Sanwa, Heng Yong Lai, Choo Weng Wah, Lee Lai Ming, Dato Sri Gan Chow Tee, Datuk Au Yee Boon, Lee Poh Hin, Lee Yee Long, Koat Kiong Hock and See Siow Chuan

    "VWAMP"

  • : Volume weighted average market price

    "WRA"

  • : Water rights agreement dated 17 December 2012 and supplemental agreement dated 11 April 2013 entered into between PHREC and the State Government of Perak

Words denoting the singular number only shall include the plural and vice versa and words denoting the masculine gender shall, where applicable, include the feminine gender, neuter gender and vice versa. Reference to persons shall include a body of persons, corporate or unincorporated (including a trust). Any reference to a time of day shall be a reference to Malaysian time, unless otherwise stated. Any reference to any statute is a reference to that statute as for the time being amended or re-enacted.

iii

CONTENT

PAGE

LETTER TO THE SHAREHOLDERS OF GCAP IN RELATION TO THE PROPOSED RIGHTS ISSUE

EXECUTIVE SUMMARY ............................................................................................................................. v

  • 1.0 INTRODUCTION .............................................................................................................................. 1

  • 2.0 DETAILS OF THE PROPOSED RIGHTS ISSUE .............................................................................. 2

  • 3.0 UTILISATION OF PROCEEDS ......................................................................................................... 9

  • 4.0 RATIONALE FOR THE PROPOSED RIGHTS ISSUE .................................................................... 11

  • 5.0 INDUSTRY OVERVIEW AND PROSPECTS ................................................................................. 12

  • 6.0 EFFECTS OF THE PROPOSED RIGHTS ISSUE ........................................................................... 16

  • 7.0 HISTORICAL SHARE PRICES ....................................................................................................... 19

  • 8.0 APPROVALS REQUIRED .............................................................................................................. 19

  • 9.0 INTERESTS OF DIRECTORS, MAJOR SHAREHOLDERS, CHIEF EXECUTIVE

    AND/OR PERSONS CONNECTED ................................................................................................. 20

  • 10.0 DIRECTORS' STATEMENT AND RECOMMENDATION ............................................................ 20

  • 11.0 OUTSTANDING CORPORATE EXERCISES ................................................................................. 20

  • 12.0 ESTIMATED TIME FRAME FOR COMPLETION OF THE PROPOSED RIGHTS ISSUE ............. 21

  • 13.0 EGM ................................................................................................................................................ 21

  • 14.0 FURTHER INFORMATION ............................................................................................................ 21

APPENDICES

  • I FINANCIAL PERFORMANCE AND FINANCIAL POSITION OF THE GROUP ........................... 22

  • II FURTHER INFORMATION ............................................................................................................ 24

NOTICE OF EGM ...................................................................................................................... ENCLOSED

PROXY FORM ........................................................................................................................... ENCLOSED

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G Capital Bhd published this content on 04 April 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 04 April 2022 08:03:05 UTC.