KUALA LUMPUR: Shares of Time dotCom fell at the start of trade on Tuesday, Nov 16 after it proposed a corporate exercise but investors were unhappy with the share capital reduction and share consolidation.
At 9am, it was down 11 sen to 66 sen and there were 2.5 million shares done. Time Engineering, which had risen recently as it rode on positive news expected from Time dotCom, fell six sen to 46 sen.
The FBM KLCI was up 1.76 points to 1,503.32. Turnover was 20.12 million shars valued at RM11.9 million. There were 88 gainers, 22 losers and 84 counters unchanged.
Time dotCom is undertaking a RM339 million acquisition exercise of several companies in the telecommunication services and infrastructure industry in a bid to transform itself into a regional player. As part of the corporate exercise, it is undertaking a share capital reduction, capital repayment and the acquisition of four companies as it seeks to expand into the regional telecommunications industry.
The exercise involves a share capital reduction of its paid-up of RM2.53 billion, comprising of 2.53 billion shares of RM1 each by cancelling 90 sen of the par value, followed by a share consolidation of the 2.53 billion 10 sen shares into 506.15 million shares, on the basis of five shares of 10 sen each to one share of 50 sen each in Time dotCom.
Time dotCom also entered into two memoranda of agreements with the shareholders of Megawisra Sdn Bhd and Global Transit Ltd (Labuan) to acquire four companies for a total of RM286.5 million via the issuance of new shares and RM38.4 million cash.
The four companies are Global Transit Communications Sdn Bhd for RM106 million, Global Transit Ltd for RM105 million, Global Transit (HK) Ltd and Global Transit Singapore Pte Ltd for RM1 each and AIMS Group for RM128 million in cash and shares. It also proposed a capital repayment of RM50.61 million or two sen per TdC share.
At 9am, it was down 11 sen to 66 sen and there were 2.5 million shares done. Time Engineering, which had risen recently as it rode on positive news expected from Time dotCom, fell six sen to 46 sen.
The FBM KLCI was up 1.76 points to 1,503.32. Turnover was 20.12 million shars valued at RM11.9 million. There were 88 gainers, 22 losers and 84 counters unchanged.
Time dotCom is undertaking a RM339 million acquisition exercise of several companies in the telecommunication services and infrastructure industry in a bid to transform itself into a regional player. As part of the corporate exercise, it is undertaking a share capital reduction, capital repayment and the acquisition of four companies as it seeks to expand into the regional telecommunications industry.
The exercise involves a share capital reduction of its paid-up of RM2.53 billion, comprising of 2.53 billion shares of RM1 each by cancelling 90 sen of the par value, followed by a share consolidation of the 2.53 billion 10 sen shares into 506.15 million shares, on the basis of five shares of 10 sen each to one share of 50 sen each in Time dotCom.
Time dotCom also entered into two memoranda of agreements with the shareholders of Megawisra Sdn Bhd and Global Transit Ltd (Labuan) to acquire four companies for a total of RM286.5 million via the issuance of new shares and RM38.4 million cash.
The four companies are Global Transit Communications Sdn Bhd for RM106 million, Global Transit Ltd for RM105 million, Global Transit (HK) Ltd and Global Transit Singapore Pte Ltd for RM1 each and AIMS Group for RM128 million in cash and shares. It also proposed a capital repayment of RM50.61 million or two sen per TdC share.
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