KUALA LUMPUR: MMAG Holdings Bhd
has proposed reducing its issued share capital by up to RM130mil to eliminate accumulated losses and strengthen its financial position.
In a filing with Bursa Malaysia, the integrated supply chain management provider said the proposed capital reduction would involve cancelling up to RM130mil of its issued share capital under Section 117 of the Companies Act 2016.
The corresponding credit arising from the exercise will be used to offset the company's accumulated losses.
As at Sept 11, 2026, MMAG had an issued share capital of RM298.3mil comprising 2.32 billion ordinary shares. It also had 101.19 million outstanding warrants with an exercise price of 15 sen each.
“The proposed capital reduction will enable the company to rationalise its financial position by eliminating the accumulated losses to more appropriately reflect the value of the underlying assets, thereby enhancing the financial profile of the group with the bankers, customers, suppliers, investors and other stakeholders,” MMAG said.
It added that the exercise would not result in any adjustment to its share price or change the number of shares in issue or shares held by shareholders.
There will also be no payment to shareholders, cash outflow or change in the company's net assets, apart from estimated expenses of RM170,000 related to the exercise.
Based on its unaudited accounts as at June 30, 2026, MMAG had accumulated losses of RM128.6mil at the company level and RM168.6mil at the group level.
For illustration, after applying the maximum RM130mil credit and accounting for estimated expenses, the company would record retained earnings of RM1.23mil, while the group would still have accumulated losses of RM38.73mil.
The proposed capital reduction will not have any material effect on the group's earnings and earnings per share for the financial year ending March 31, 2027. It will also have no effect on the shareholdings of MMAG's substantial shareholders.
The proposal is subject to shareholders' approval at an extraordinary general meeting and any other relevant approvals, if required.
MMAG expects the exercise to be completed in the first quarter of 2027, barring unforeseen circumstances.
M&A Securities Sdn Bhd is the principal adviser for the proposed capital reduction.
