S. Megga deal to raise $61.8m

Telecommunications equipment maker S. Megga International Holdings is to raise $61.8 million through a placement and subscription deal involving its 24.7 per cent shareholder Fook Man Development Co.

Fook Man is to place 114 million shares - 16.6 per cent of S. Megga's enlarged capital - at 55 cents a share and then subscribe for the same amount of shares at the same price.

The placement price is at a 15.4 per cent discount to the stock's closing price of 65 cents.

Fook Man's stake will fall to 20.6 per cent after the deal, which is aimed at bolstering general working capital.