Nam Cheong controlling shareholder to take up RM50m of rights shares

Singapore

THE controlling shareholder of Nam Cheong has pledged to subscribe in full his share of a proposed rights issue that will cost him some RM50 million (S$15.9 million).

The irrevocable undertaking from Malaysian tycoon Tiong Su Kouk, who owns about 46 per cent of Nam Cheong, is to provide support for the company's debt restructuring plan. The amount will be used to fund an option for noteholders to cash out their debt - albeit with a severe haircut - in the debt restructuring plan; any subscription from other shareholders will be used for the firm's operations.

This, and other details, were presented to Nam C…