Sungei Bagan to distribute 3.8m Kluang Rubber shares to shareholders


?The proposed project, if materialised, could provide Tan Chong Motor with opportunity to expand its foothold in the automotive industry in Vietnam,? the company said in a filing with Bursa Malaysia last Friday

KUALA LUMPUR: Sungei Bagan Rubber Company (Malaya) Bhd has proposed to distribute to its shareholders 3.83 million shares of Kluang Rubber Company (Malaysa) Bhd which it currently owns.

It said on Tuesday, the shares, or a 6.08% stake, would be distributed on the basis of one Kluang Rubber share for every 17.3 Sungai Bagan shares.

Sungei Bagan said the key rationale for the dividend in-specie was to reward the shareholders for their continuous support by providing them with an opportunity to invest directly in Kluang Rubber at no cost.

It added the corporate exercise would unlock shareholders’ value by giving them the option to continue participating directly in Kluang Rubber or liquidate the shares for cash.

Meanwhile, Kuchai Development Bhd, which is a shareholder in Sungai Bagan, said it would receive 1.017 million Kluang Rubber shares due to the dividend in-specie.

Kuchai announce it proposed to distribute up to 1.97 million Kluang Rubber shares -- which consists of its current holding of 959,522 shares and the 1.017 million shares to be received from the dividend in-specie by Sungei Bagan –  to its own shareholders.

This would be on the basis of one Kluang Rubber share for every 62.6 ordinary shares held in Kuchai.

“The proposed dividend in-Specie will involve a distribution of up to 1.97 million Kluang Rubber shares, representing a 3.13% equity interest in Kluang Rubber, to the shareholders of Kuchai,” it said.
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