PETALING JAYA: Yi-Lai Bhd is proposing a two-for-three bonus share issuance and also a change of name to YB Ventures Bhd.
The bonus issuance will see 97.047 million new shares, on the basis of two bonus shares for every three existing Yi-Lai shares held on an entitlement date to be determined later.
Upon the completion of the corporate exercise, Yi-Lai’s share capital will increase to 242,617,653 shares from 145,570,592 shares (including 484,900 treasury shares) presently, the company said in a press release.
“The proposed bonus issue serves to reward the shareholders of the company for their continuous support and further enhance the marketability and trading liquidity of Yi-Lai, ” its executive director Au Yee Boon said.
The company said that based on illustrative purposes, and based on the five day volume-weighted average market price of Yi-Lai shares up to and including the latest practicable date prior to the announcement of 95.68 sen, the theoretical ex-bonus price is 57.41 sen.
Commenting on the change of company name, Au said: “This rebranding exercise represents a significant step forward in our company’s transformation, led by the new management team, to achieve its full potential as a diversified holding company, to pursue strategic opportunities that will contribute positively to shareholders’ value.”
The company’s proposed bonus issue is expected to be completed by the second quarter of 2021 while the proposed change of company name will take effect from the date of the registration of change of name to be issued by CCM to the company, if approved by its shareholders.
Au meanwhile said that the company is confident of maintaining earnings momentum that was achieved following continuous effort in cost optimisation and the increased sales momentum in the fourth quarter of 2020.
“We are currently exploring a few more business collaborations and potentially a merger & acquisition opportunity.
“The Covid-19 pandemic presents us with a good opportunity to explore such business opportunities given our strong financial position to expand our growth, ” Au said.