Mulpha Land proposes to cancel 90c of each RM1 share

KUALA LUMPUR: Mulpha Land Bhd has proposed to reduce its share capital by cancelling 90 sen of each RM1 share which will give rise to RM82.2 million to fully set-off its accumulated losses and the remaining balance to be credited to the company's capital reserves.

The audited accumulated losses as at Dec 31, 2009 were only RM3.4 million at group level and RM4.8 million at company level.

"In addition, the proposed par value reduction provides an opportunity for Mulpha Land to strengthen its financial position by eliminating the accumulated losses of the company," it said on Monday, May 10.

Mulpha Land said the credit arising from the proposed par value reduction will be utilised to fully set-off against the accumulated losses of the company and the remaining balance will be credited to the capital reserves of the company.

It said assuming all 30.83 million irredeemable convertible preference shares (ICPS) were converted into new shares and assuming none of the outstanding 30.24 million warrants are converted (as they are out-of-money at the exercise price of RM1.75 each), the proposal will reduce the enlarged issued and paid-up share capital of RM91.32 million comprising 91.32 million shares to RM9.13 million, comprising 91.32 million 10 sen share.

It added the reduction of 90 sen in par value would give rise to a credit of RM82.2 million which would be used to fully set-off the accumulated losses and the remaining balance will be credited to the capital reserves.