Press Metal proposes 1:1 bonus issue

KUALA LUMPUR: Press Metal Aluminium Holdings Bhd is proposing to undertake a bonus share issuance of 4.038 billion new shares on the basis of one bonus share for every one existing share held, on a yet-to-be-determined entitlement date.

The company, which is Southeast Asia's largest aluminium smelter, said in a statement the bonus issue is to reward shareholders for their loyalty and continuous support as well as allow them to have greater participation in the group's equity while retaining their precentage of equity interest.

The shares will also become more affordable and appealing to a wider group of investors, which could improve the liquidity and marketability of the shares.

The proposed bonus issue is subject to the approvals of relevant authorities and the shareholders of Press Metal at a general meeting to be held on a later date.

"We are deeply appreciative of the support from our shareholders, especially during these challenging times brought about by the pandemic.

"Creating value for shareholders is one of Press Metal’s priorities and the Proposed Bonus Issue is an alternative avenue for us to reward our shareholders apart from cash dividends," said group CEO Tan Sri Paul Koon.

He added that the group is looking towards a new phase of growth in 2021 as the Phase 3 smelter commenced production in December 2020.

Full operating capacity is expected to be achieved in the second half of this year, which will increase smelting capacity by 42% to 1.08 million tonnes per annum.

The group also expects positive contribution from its investment in PT Bintan Alumina Indonesia once Phase 1 of the refinery is completed by the second quarter of 2021.
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