Tuesday, November 1, 2011

Supermax plans 1-for-1 bonus issue, share buy-back

KUALA LUMPUR (Nov 1): SUPERMAX CORPORATION BHD [] had proposed a corporate exercise involving a one-for-one bonus issue and also to buy back up to 10% of its paid-up share capital.

The company said on Tuesday, the bonus issue of 340.07 million new shares would be credited as fully paid-up on the basis of one bonus share for every one existing share held on an entitlement date to be determined later.

'After due consideration, the board is of the view that the proposed bonus issue is the most appropriate avenue of rewarding the existing shareholders of the company while at the same time enhancing the company's share capital base,' it said.

Supermax said the proposed bonus issue will increase the company's issued and paid-up share capital to a level which would be more reflective of its current scale of operations and assets employed.

Supermax also proposed to buy back up to 10% of its issued and paid-up share capital at any point of time.

It said the proposed share buy-back, if implemented, would enable it to utilise any of its surplus financial resources, which is not immediately required for other uses, to purchase its own shares from the market.

'The proposed share buy-back is expected to stabilise the supply and demand, as well as the price of the Supermax shares,' it said.

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