Etika

Etika: Templeton fund proposed to subscribe for btwn S$20-28m 5-yr zero coupon USD convertibles. Deal yet to be confirmed, with dateline for closing set at 15 Sep. Conversion price is $1.05/sh. Dilution is btwn 8.3 - 11.6% if bonds are fully converted. Funds to be used for working capital, capex and M&A. Positive for Eitka if deal goes through, as company will gain an important strategic investor in Templeton. Templeton’s vote of confidence will also improve sentiment in the stock...

Etika is a manufacturer and distributor of sweetened condensed milk and evaporated milk, as well as a repacker and distributor of complementary products such as full cream and instant high-calcium non-fat milk powder, instant coffee powder and tea dust. Its main production and warehousing facility is in Selangor, Msia. Company exports to Asean, East and West Africa, Central and South America, Middle East and other Asia-Pac countries.