KNM Group Bhd has proposed to consolidate its shares to improve its capital structure by reducing the number of shares but without affecting value of the securities.
The group is proposing to consolidate every four of its shares of 25 sen each into 1 ordinary share of RM1 each. The company has also proposed to amend its memorandum and articles of association to effect the share consolidation exercise.
As at August 30 2010, the issued and paid-up share capital of KNM (7164) is about RM1 billion, comprising 4.004 billion shares.
Upon completion of the proposed share consolidation, the issued and paid-up share capital of KNM would be rounded down to about RM1.0 billion, comprising about 1.0 billion consolidated shares.
The actual number of consolidated shares to be issued will however be determined based on the issued and paid-up share capital of KNM as at the entitlement date of the proposed share consolidation.
KNM said with the introduction of SPEEDS by Bursa Malaysia Securities Bhd, there will not be any suspension on the trading of the consolidated shares, pursuant to the exercise.
KNM said following the exercise KNM's capital structure there would be an immediate reduction in the number of KNM shares.
KNM shall benefit from easier management of a smaller number of shares, where the consolidated shares shall bear the same value of the existing KNM securities but at no expense to neither KNM nor its investors, it added. - Business Times
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