Announcement of a RM2-a-share capital repayment to shareholders is imminent as the company is in intensive talks with a property developer from Sabah on a reverse takeover plan.
Kuala Lumpur: Jerneh Asia Bhd (6394) is expected make an announcement on a RM2-a-share capital repayment to shareholders by as early as next week, people familiar with the matter said yesterday.
Announcement of the dividend payout is imminent as the company is in intensive talks with a property developer from Sabah on a reverse takeover plan.
On Monday, Business Times reported that Jerneh is a reverse takeover (RTO) target by an East Malaysian property developer, paving the way for its backdoor listing on Bursa Malaysia.
In response to the Business Times article, Jerneh told Bursa Malaysia yesterday that "the company is in talks with a number of companies for a possible asset injection," adding that the move is "part of its regularisation plan".
It was reported previously that any dividend payout will depend on Jerneh's ability to come up with a regularisation plan.
Jerneh, some 37 per cent owned by Robert Kuok Hock Nien - the country's richest man, is being advised by CIMB Investment Bank Bhd on the regularisation plan.
The company has a cash war chest of RM635 million, though however it is understood that the dominant stakeholders are looking to opt out via capital repayment cum reverse RTO exercise.
With a market capitalisation of RM588.7 million, Jerneh has about 182.8 million shares and 66.3 million warrants.
The warrants can be converted into mother shares, based on a RM1.60 strike rate, meaning warrant holders will have to pay that amount for every share which they want to convert into the mother share.
To recap, Jerneh in September last year sold its 80 per cent stake in Jerneh Insurance Bhd to US insurer ACE INA International Holdings for RM523.2 million.
It is now classified as a PN16 cash-rich company, on top of its PN17 loss of core business status triggered by the sale of its main asset, Jerneh Insurance.
Its shares rose 3.21 per cent to close at RM3.22 yesterday, its highest close since November 10 2010, while the warrants closed 16 sen higher at RM1.65. - By Rupinder Singh and Francis Fernandez of btimes.com.my
No comments:
Post a Comment