VS rewards shareholders with proposed 1-for-10 bonus issue of warrants

KUALA LUMPUR: V.S. Industry Bhd has proposed to undertake a bonus issue of up 395.7 million free new warrants in VS based on one warrant for 10 existing VS shares.

In a statement, the electronics manufacturing services (EMS) provider said the entitlement date would be determined and announced later. The warrants shall have a tenure of two years.

“We are grateful for the continuous support of our shareholders and would like to take this opportunity to express our appreciation towards the confidence and patience given to us as we embark on our next growth journey.

“This initiative serves as an additional avenue to reward our shareholders, complementing our steady stream of dividends,” managing director Datuk S.Y. Gan said.

He said the proposed bonus issue of warrants, issued to shareholders at no cost, allows them to boost their equity in VS by exercising the warrants at a predetermined price during the warrant's duration.

“Our shareholders may also benefit from the potential capital appreciation arising from the exercise of warrants based on the future growth prospects of the group. From the VS’ perspective, this exercise would potentially provide additional funds to the group for working capital needs as and when the warrants are exercised without incurring additional interest expense as compared to bank borrowings,” he added.