Uchitec proposes 20c capital repayment totalling RM90.42m

KUALA LUMPUR: Uchi Technologies Bhd has proposed a capital repayment of 20 sen a share to the shareholders of up to RM90.42mil.

It said on the Monday the coporate exercise would involve a reduction of the share  capital from RM157.54mil to between RM68.06mil and RM72.12mil.

Uchitec said the proposed capital repayment was to reward the shareholders of Uchitec for their continuous support by returning excess cash  after taking into consideration the current financial standing (including its cash and cash equivalents, reserves and zero gearing), future financial obligations and operational requirements.

It added the proposed capital repayment would enable its shareholders to realise a portion of their investment in the company in the form of cash and improve the return on equity of the group in the longer term. This would not affect the number and percentage of shares held by its shareholders. 

Uchi's core business is in original design manufacturing, specialising in the design of electronic control systems.