Mah Sing Group Bhd will use the proceeds from its corporate exercise involving rights issue, share split and bonus issue for working capital and new development projects in the Klang Valley and Johor.

It said in a statement in Kuala Lumpur that the shareholders approved the corporate exercise, to be completed by June, at yesterday’s extraordinary general meeting.

The exercise involves a proposed renounceable rights issue up to 53.039 million new ordinary shares of RM1 each on the basis of one rights share for every four existing ordinary shares of RM1 each.

The proposed share split involves the sub-division of every existing RM1 ordinary shre into two ordinary shares of 50 sen each, the company said.

Meanwhile, the proposed bonus of up to 106.078 million new ordinary shares of 50 sen each is on the basis of one bones share for every five existing ordinary shares of 50 sen each.

Mah Sing said the corporate exercise, also approved by the Securities Commission, will enable it to increase its capital base and improve its liquidity by further enlarging the market capitalization.

The company’s 12 projects are in prime locations in the Klang Valley and the Iskandar Development Region in Johor – Bernama