KPower announces 1-into-4 stock split with free warrants

KUALA LUMPUR: Kumpulan Powernet Bhd has proposed to increase the number of its shares by dividing one current stock into four new shares that will be issued with free warrants.

The warrants will be distributed to eligible shareholders on the basis of one warrant for every three shares held after the stock split exercise.

The warrants can be converted into new KPower shares based on the exercise price of RM2.50 per warrant.

"This share split plus warrant is a splendid combination of mutual win for the company and our shareholders. With the share split, there will be liquidity and the shareholders will be rewarded for staying with us for the long term," its chairman Datuk Mohd Abdul Karim Abdullah said in a statement today.

The new share split ratio is a revision to the two-for-one proposed in June this year.

The free warrants, meanwhile, come with a tenure of five years with the exercise price at RM2.50 after the share split.

In the event the warrants are fully exercised, the company is expected to raise gross proceeds of up to approximately RM376.94mil.

The entitlement date will be determined and announced later as it requires the approvals of Bursa Malaysia and KPower shareholders.

"Barring any unforeseen circumstances, the Group expects the proposals to be completed by the first quarter of 2021," it said.

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