PETALING JAYA: DiGi.Com Bhd announced today that it plans to split each existing share into 10 ordinary shares so that its shares are more affordable to a wider reach of investors and the company's trading liquidity on the local stock market will improve.
Aside from this, the company's wholly-owned unit DiGi Telecommunications Sdn Bhd will undertake a capital distribution of RM509mil to DiGi.Com.
The proposed capital distribution entails the issuance of redeemable preference shares from DiGiTel to DiGi.Com, which upon redemption will result in a cash payment of RM509mil to DiGi.Com.
DiGi.Com intends to distribute the excess proceeds from the capital distribution to all its shareholders by the first half of next year.
Meanwhile, DiGi.Com told Bursa Malaysia in a filing that its proposed subdivision entails every existing share of 10 sen each to be divided into 10 ordinary shares of one sen each.
As at Sept 5, the company's issued and paid-up share capital is RM77.75 million comprising 777.5 million ordinary shares of 10 sen each. Upon the share split, the number of shares will increase to 7.775 billion shares.
The proposed share split will result in a corresponding dilution of the earnings per share of DiGi.Com due to the increase in the number of shares. The proposal should be completed by the fourth quarter of this year.
DiGi.Com's chief executive officer Henrik Clausen said the announcements mark another milestone in the company's capital management roadmap.
“The proposed share split would keep the trading range of DiGi shares better aligned with its peers. These initiatives also reflects the board's and management's continuing confidence in the company's business fundamentals and ability to deliver solid earnings and cash-flow going forward,” Clausen added in a press statement.
DiGi.Com's shares are suspended today from 9am to 5pm pending these material announcements.
No comments:
Post a Comment