MSC proposes share split and bonus issue

KUALA LUMPUR: Tin miner and metal producer, Malaysia Smelting Corp Bhd (MSC) has proposed two corporate exercises comprising a 2-for-1 share split and a 1-for-1 bonus issue to reward its shareholders as well as enhance its capital base. 

In a statement, MSC said the entitlement date would  be determined later. 

The 2-for-1 share split will involve a subdivision of every one existing share into two subdivided shares. Pursuant to the completion of the proposed share split, the group is offering a bonus issue of up to 200 million new subdivided shares on the basis of one bonus share for every one split share.

Following the completion of both of the proposed share split and bonus issue exercises, MSC’s share capital will increase to RM200mil comprising 400 million MSC shares. 

Essentially, a shareholder who owns one MSC share at the entitlement date will end up with four MSC shares upon completion of both corporate exercises.

“We are pleased to announce these corporate initiatives as a token to reward our shareholders for their continuous support while increasing the group’s share capital base. 

“Furthermore, with a more affordable entry price, we expect trading liquidity and marketability of our shares to improve and attract a wider reach of investors,” CEO Datuk Dr Patrick Yong said in the statement.

The group expects the proposed share split and bonus issue to be completed by the third quarter of 2018, subject to the approval of Bursa Malaysia Securities as well as the shareholders of the group at an extraordinary general meeting to be convened.