KUALA LUMPUR (APRIL 25): DIGI.COM BHD []’s wholly owned unit DiGi Telecommunications Sdn Bhd (DiGiTel) will undertake a capital distribution of about RM495 million to DiGi on the basis of cash repayment of 99 sen for every one existing share of RM1 each in DiGiTel.
In a filing to Bursa Securities on behalf of DiGi on Wednesday, Hong Leong Investment Bank Bhd said the capital distribution was to be implemented via a reduction of the issued and paid-up share capital of DiGiTel pursuant to Section 64 of the Companies Act 1965.
“Upon receipt of the cash proceeds from DiGiTel, DiGi expects to distribute approximately RM495 million (less expenses) representing 64 sen per share to its shareholders,” it said.
The investment bank said DiGi intended to distribute the excess proceeds to its shareholders whose names appear in the Record of Depositors of the Company on an entitlement date, and in such manner, to be determined and announced later.
“The proposed capital distribution is subject to, amongst others, the order of the High Court of Malaya confirming the proposed capital distribution and consents from lender banks and creditors of DiGiTel, if necessary.
“Barring any unforeseen circumstances, DiGi is expected to complete the distribution by the first quarter of 2013,” it said.
The capital management initiative is undertaken by DiGi and its subsidiary to reward shareholders for their continuous support of DiGi, it said.
In a filing to Bursa Securities on behalf of DiGi on Wednesday, Hong Leong Investment Bank Bhd said the capital distribution was to be implemented via a reduction of the issued and paid-up share capital of DiGiTel pursuant to Section 64 of the Companies Act 1965.
“Upon receipt of the cash proceeds from DiGiTel, DiGi expects to distribute approximately RM495 million (less expenses) representing 64 sen per share to its shareholders,” it said.
The investment bank said DiGi intended to distribute the excess proceeds to its shareholders whose names appear in the Record of Depositors of the Company on an entitlement date, and in such manner, to be determined and announced later.
“The proposed capital distribution is subject to, amongst others, the order of the High Court of Malaya confirming the proposed capital distribution and consents from lender banks and creditors of DiGiTel, if necessary.
“Barring any unforeseen circumstances, DiGi is expected to complete the distribution by the first quarter of 2013,” it said.
The capital management initiative is undertaken by DiGi and its subsidiary to reward shareholders for their continuous support of DiGi, it said.
