A Scomi project in India. - Filepic
KUALA LUMPUR: Shares of Scomi Group Bhd jumped 21% as they resumed trading this afternoon after announcing its corporate exercise involving the merging of its two subsidiaries and the issuance of free warrants.
The counter surged as much at 21.74%, or 2.5 sen to RM14 sen at 2.42pm. However, Scomi Energy Services Bhd
fell 1.5 sen, or 11.54% to 11.5 sen while Scomi Engineering Bhd eased three sen to 29.5 sen.
StarBiz reported that shareholders of Scomi Group will benefit from the corporate exercise. Simple back-of-the-envelope calculations show that Scomi investors are in the money from the exercise.
On Monday, Scomi Group has put forth a plan to merge its business with two listed subsidiaries — Scomi Energy Services Bhd (SESB) and Scomi Engineering Bhd (SEB), via a share swap deal with free warrants.
Scomi Group currently holds 65.64% equity interest in SESB and a 72.33% stake in SEB.
The proposed exercise will involve a share consolidation of every two existing ordinary shares into one ordinary share, a bonus issue of seven warrants for every 10 consolidated shares held.
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