Capital World signs MOU for capital injection from Bursa-listed firm

INTEGRATED property developer Capital World on Monday announced that it had signed a non-binding memorandum of understanding with PRG Holdings, a Bursa-listed investment holding company, for the latter to inject capital into the company by subscribing for new shares in Capital World.

Upon completion of the proposed investment, PRG, which is in the business of making and selling webbings, yarn, furniture components, rubber strips and fabrics, healthcare, and also involved in property development and construction, shall hold up to 29.9 per cent of the enlarged issued share capital of Capital World.

The exact terms of the investment are still subject to further negotiations and the satisfaction of conditions, such as both sides finalising and entering into a definitive agreement, as well as PRG conducting and being satisfied with the results of due diligence on the group, and the parties obtaining relevant approvals from regulatory authorities in Singapore and Malaysia.

"The proposed investment is expected to generate business synergies between parties," Capital World said.

The company has requested to lift its trading halt at 2pm, Monday.