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Plenitude proposes 1-for-1 bonus issue

KUALA LUMPUR: Plenitude Bhd has proposed a bonus issue of 135 million fully paid-up new shares of RM1 each on the basis of one bonus share for every existing share held in Plenitude, it announced on Bursa Malaysia on Tuesday, Sept 7.

The exercise will effectively double its share capital and lower its net assets per share to RM2.42.

The corporate exercise will be accomplished by capitalising about RM17.6 million from the company’s share premium account, while the remaining amount of RM117.4 million will be capitalised from the company’s retained earnings account, it said.

According to Plenitude’s unaudited financial statements for the financial year ended June 30, 2010, its share premium account and retained earnings at the company level is about RM17.6 million and RM354.2million respectively.

The bonus issue shares will rank pari passu with existing shares except that they will not be entitled to any dividends, rights, allotments and/or other distributions which may be declared, made or paid to shareholders, it said.

“Fractional entitlements of the bonus shares, if any, shall be dealt with in such manner as the board in its absolute discretion deems fit, expedient and in the best interest of the company,” it said.

The group is proposing the bonus issue to increase its issued and paid-up share capital to a level that more accurately reflects the current size of its business; reward its existing shareholders for their continuous support to the group by allowing them greater participation in the group’s equity via numbers of shares held while maintaining their equity interest; and improve trading liquidity of its shares on the trading bourse.

An EGM will be convened to seek shareholders’ approval for the proposal, it said.

The date of entitlement will be determined and announced later.

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