Abric shares down as investors ignore 43 sen distribution

KUALA LUMPUR : Shares of Abric Bhd fell to a low of 48 sen on Tuesday after the Practice Note 16 company announced a proposed cash distribution of 43 sen and a subsequent delisting from Bursa Malaysia.

As at 12pm,shares of the former security sealing solutions company were down 1.5 sen at 49.5 sen. It closed at 51 sen on Jan 15 prior to the stock’s suspension on Monday.

Its company's warrants, Abric-WB, fell one sen to 19 sen.

Abric had proposed a capital reduction and repayment exercise as well as a special cash dividend.

The cash distribution totalling 43 sen per share amounts to RM63.9mil based on the company’s share base of 140.52 million shares and 8.06mil outstanding warrants. 

The company will then seek to delist it from the Main Market of Bursa Malaysia after the exercise in completed.

Abric is classified as a PN16 company under Bursa Malaysia’s Listing guidelines. This means that it is a cash company without a core business.

The company sold its entire core business in December 2014.

“Upon completion of the proposed distribution and delisting, the board intends to sell the remaining assets of Abric and voluntarily wind-up the company," it said.