Sentoria Group Berhad (Sentoria) initiates a transformative journey to bolster its market presence with a strategic revitalization plan. Sentoria, under the leadership of a newly appointed senior management team, announces two key initiatives: Proposed Share Consolidation and the issuance of Redeemable Convertible Bonds (RCB) amounting to RM 150 million upon full completion. These changes aim to revive and rejuvenate operations, enhance transparency, and fortify Sentoria's financial foundation for sustained growth.
In a bid to fortify its financial structure and enhance shareholder value, Sentoria proposes a consolidation of every 4 existing ordinary shares into 1 share, termed the "Consolidated Share(s)." This strategic move aims to streamline the company's equity b.ase, offering investors a more consolidated and robust stake in Sentoria's future endeavours. The adjusted price after share consolidation is expected to be RM0.30 [RM0.075 (current market price) x 4].
Dato’ Loh Yuen Tuck, Group Chief Executive Officer, Sentoria Group Berhad, stated, “The Proposed Share Consolidation signifies a commitment to capital base efficiency and fiscal prudence, aligning with Sentoria's dedication to value creation. It positions the company for a turnaround sustained growth.”
Simultaneously, Sentoria charts a course for future growth through the issuance of Redeemable Convertible Bonds (RCB). With an aggregate principal amount of up to RM150.0 million, the RCBs are designed to provide the company with the financial flexibility needed to embark on various strategic initiatives and address its operational needs.
The RCBs tenure are for a period of 36 months, maturing on the Initial Closing Date. This financial instrument not only injects fresh capital but also offers the Subscriber an opportunity to partake in Sentoria's resurgence, while benefiting from an equity exposure. The Subscriber identified is Triton Capital Llc Singapore which manages its funds under TCF Fund A whose assets and fund management license are issued by the Monetary Authority of Singapore (MAS).
Crucially, the Proposed Share Consolidation and the Proposed RCB are inter-dependent, representing a synchronized effort to reinforce Sentoria's financial foundation comprehensively. This holistic approach demonstrates the company's commitment to addressing both capital structure and liquidity concerns in tandem, positioning it as a robust and attractive prospect for investors, the banking sector, and the corporate world.
Most funds will be immediately utilized to complete the Morib Bay Resort City (MBRC) projects by Q2 2024, expenses relating to the proposed RCB and working capital. The rest of the funds are projected for future construction, property development, reduction of bank borrowings and diversification into specialised warehouses on its own land bank for the next 2 to 3 years.
Acting as the Principal Advisers, Kenanga Investment Bank Berhad and Mercury Securities Sdn Bhd underscores the seriousness of Sentoria's commitment to lay a stronger foundation for recovery and sustainable growth.
As Sentoria embarks on this journey of revitalization, industry observers, investors, and stakeholders alike are keenly watching to witness the outcomes of these strategic initiatives. “The newly appointed senior management and I have confidence in the transformative power of these proposals. We believe that it will not only mitigate the impact of past challenges but also pave the way for Sentoria's renewed sustainable turnaround success,” concluded Dato’ Loh.
Sentoria Group Berhad is poised for a new chapter, and these proposals serve as a testament to its commitment to resilience, growth, and adaptability in the ever-evolving business landscape learning from its past mistakes.
