PETALING JAYA: Citaglobal Bhd
is proposing to reduce its issued share capital by RM255mil to eliminate accumulated losses and create retained earnings to facilitate a share buy-back of up to 10% of its issued shares.
The group recorded accumulated losses of RM217.72mil as at June 30, 2026, mainly attributable to historical operating losses and impairment of investments in subsidiaries.
The proposed capital reduction will not affect the number of shares held by shareholders, share prices or the group's net assets, and will not involve any cash outflow apart from expenses related to the proposals.
Based on the company's issued share capital as at Sept 30, 2026, Citaglobal could purchase up to 56.33 million shares. At an illustrative average purchase price of RM1.07 per share, the buy-back would cost approximately RM60.27mil.
The company said the proposed share buy-back would provide flexibility to purchase shares when they trade below the board's view of their intrinsic value, potentially enhancing earnings per share and return on equity.
Citaglobal's public shareholding spread stood at 33.30% as at Sept 30, 2026. If the buy-back is implemented in full and shares are purchased from public shareholders, the spread would decline to 25.89%, remaining above the minimum 25% requirement.
The company also noted that a full buy-back could increase the shareholding of its largest shareholder, executive chairman and president Tan Sri Mohamad Norza Zakaria, and potentially trigger a mandatory general offer unless an exemption is granted.
Citaglobal said it intended to implement the buy-back in a manner that would avoid triggering such an obligation.
