KUALA LUMPUR: CIMB Group Holdings Bhd
(CIMBGH) has proposed a special interim dividend, to be paid in PT Bank CIMB Niaga Tbk (Niaga) shares, to increase the public float of its Indonesian subsidiary with the aim of complying with the Indonesia Stock Exchange (IDX) listing regulations.
In a filing with Bursa Malaysia on Wednesday, CIMBGH said it proposed to distribute 1.367 billion existing Niaga Class B shares (dividend shares), or about 5.44% equity interest in Niaga, to CIMBGH’s shareholders on an entitlement date to be later determined.
In addition, CIMBGH said the proposed dividend-in-specie was intended to reward its shareholders for their continuous support and to provide them with an opportunity to invest directly in Niaga at no subscription cost.
CIMBGH’s unit CIMB Group Sdn Bhd, which holds most of the Niaga shares (96.92%), will transfer the dividend shares to CIMBGH by way of a redemption-in-kind of existing redeemable preference shares held by CIMBGH in CIMB Group Sdn Bhd.
Based on the CIMBGH’s existing issued and paid-up share capital, the proposed dividend-in-specie will be undertaken on the basis of 1 dividend share for every 6.39 ordinary RM1 CIMBGH shares held.
For administrative purposes and to avoid entitled shareholders holding less than one board lot (100 shares) of the dividend shares, shareholders who hold 639 or more CIMBGH shares will receive their entitlement in the form of dividend shares.
However, those holding fewer than 639 CIMBGH shares will receive cash in lieu of the actual number of dividend shares that they would otherwise be entitled to receive.
The value per dividend share 504 rupiah or 15 sen (rounded to the nearest sen), determined based on the 5-market day volume weighted average price of Niaga shares up to and including June 15.
CIMBGH shares fell 2 sen to close at RM4.34 Wednesday, with 8.453 million shares traded.
(CIMBGH) has proposed a special interim dividend, to be paid in PT Bank CIMB Niaga Tbk (Niaga) shares, to increase the public float of its Indonesian subsidiary with the aim of complying with the Indonesia Stock Exchange (IDX) listing regulations.In a filing with Bursa Malaysia on Wednesday, CIMBGH said it proposed to distribute 1.367 billion existing Niaga Class B shares (dividend shares), or about 5.44% equity interest in Niaga, to CIMBGH’s shareholders on an entitlement date to be later determined.
Niaga, in which CIMB Group owns a 97.94% stake through two wholly-owned subsidiaries, currently does no comply IDX’s requirement of at least 7.5% of its total issued and paid-up shares being held by public shareholders.
In addition, CIMBGH said the proposed dividend-in-specie was intended to reward its shareholders for their continuous support and to provide them with an opportunity to invest directly in Niaga at no subscription cost.
CIMBGH’s unit CIMB Group Sdn Bhd, which holds most of the Niaga shares (96.92%), will transfer the dividend shares to CIMBGH by way of a redemption-in-kind of existing redeemable preference shares held by CIMBGH in CIMB Group Sdn Bhd.
Based on the CIMBGH’s existing issued and paid-up share capital, the proposed dividend-in-specie will be undertaken on the basis of 1 dividend share for every 6.39 ordinary RM1 CIMBGH shares held.
For administrative purposes and to avoid entitled shareholders holding less than one board lot (100 shares) of the dividend shares, shareholders who hold 639 or more CIMBGH shares will receive their entitlement in the form of dividend shares.
However, those holding fewer than 639 CIMBGH shares will receive cash in lieu of the actual number of dividend shares that they would otherwise be entitled to receive.
The value per dividend share 504 rupiah or 15 sen (rounded to the nearest sen), determined based on the 5-market day volume weighted average price of Niaga shares up to and including June 15.
CIMBGH shares fell 2 sen to close at RM4.34 Wednesday, with 8.453 million shares traded.
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