The company also proposes to offer share option to CEO
The shares were priced at RM6.23 and raised gross proceeds of RM310.9mil.
TdC closed the day up 14 sen to RM6.15 on volume of 770,600 shares.
In a filing with Bursa, TdC said that the placement was done via a bookbuilding exercise and was satisfied entirely by cash. Proceeds from the disposal will be used for working capital.
TdC will realise a fair value gain of RM202.1mil. TdC’s original cost of investment in the shares, which were acquired in 2008, was RM2.49 per DiGi share.
On the rationale for the disposal, TdC said it was a non-core investment. This will allow TdC to re-allocate capital resources for working capital. Furthermore, it allows TdC to recognise a fair value gain.
It will also result in TdC’s basic earnings per share increasing by about 35 sen.
The disposal will not have any effect on TdC’s share capital or the substantial shareholders’ ownership.
In a separate announcement, TdC said it proposed to grant a share option to chief executive officer Afzal Abdul Rahim to subscribe to up to 17.22 million new TdC shares, representing 3% of the company’s capital.
The proposed grant is to motivate the CEO towards better performance and loyalty to the TdC Group.
“The proposed grant achieves this through alignment of the CEO’s interests with the interests of the TdC Group, which is to become a regional solutions provider to global carriers and service providers, and also to drive long-term shareholder value enhancement via direct participation in the equity of TdC,” it said.
In addition, the proposed grant is intended to reward the CEO for his contribution to the TdC Group, including his involvement in the business turnaround initiative of the group in 2009.
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