Friday, October 14, 2011

Jerneh Asia rises on capital distribution plan

KUALA LUMPUR: Shares of cash-rich JERNEH ASIA BHD [] rose on resuming trade Friday, Oct 14 after the company said it intended to undertake a capital distribution to shareholders following its planned acquisition of Sabah-based developer Sagajuta (Sabah) Sdn Bhd coming to naught.

At 10.30am, Jerneh Asia gained seven sen to RM1.36 with 1.15 million shares done.

Jerneh Asia on Friday said its plan to buy Sagajuta had been called off, as the parties could not reach a consensus on the terms of the proposed acquisition.

The announcement by Jerneh Asia on Friday, Oct 14 confirmed a report by The Edge Financial Daily today that there was a possibility of a capital repayment to shareholders.

Jerneh Asia said it and Generasi Cipta Sdn Bhd had mutually agreed the memorandum of understanding the two had signed on April 21 this year in relation to the planned acquisition of Sagajuta.

The company said that as it had announced on May 24 and in a circular to shareholders, the company did not intend to regularise its PN16 and PN17 condition if the planned acquisition did not materialise.

'Consequently, the company intends to dispose its major assets, undertake a capital distribution to its shareholders and subsequently, wind up the company.

'The proposed asset disposals, capital distribution and winding-up are subject to shareholders' approval,' it said.

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