Tuesday, April 12, 2011

Jerneh Asia: Proceeds from sale of insurance biz only for new core business

KUALA LUMPUR: JERNEH ASIA BHD [] clarifies that proceeds from the sale of Jerneh Insurance Bhd would be used to acquire a new core business approved by the Securities Commission.

It said on Tuesday, April 12 the funds had been placed with a custodian and was not to be withdrawn, except for a new core business or pro rata distributions to shareholders if the company fails to regularise its condition as a cash company.

'Any form of earlier dividend will be subject to the submission of a regularisation plan to the SC as well as the approval of Bursa Securities,' it said.

Jerneh Asia was responding to an article in a local newspaper entitled "Jerneh may announce dividend payout next week".

It also said the board of directors had appointed AmInvestment Bank Bhd as its main adviser for its regularisation plan.

Jerneh shares rose four sen to RM3.26 at midday with 1.68 million shares done.

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