Omesti to pay stock dividend with Microlink shares

Omesti to pay stock dividend with Microlink shares

Wednesday, 10 June 2015
By: M. HAFIDZ MAHPAR

[size=16]KUALA LUMPUR: Omesti Bhd plans to distribute up to 5.978 million Microlink Solutions Bhd shares to its entitled shareholders as dividends on the basis of one share per 100 Omesti share held.

Based on Microlink’s last traded price of RM1.74 on Wednesday, the dividend payout is equivalent to RM10.64mil. Omesti’s share price fell 1 sen to 66 sen on Wednesday.

The IT services firm now holds a 79.02% stake, or 120.232 million shares, in Microlink through unit Omesti Holdings. The shares allocated for the dividend-in-specie represent a 4% stake.

Besides rewarding its shareholders, Omesti told Bursa Malaysia that the proposed distribution was undertaken to rectify the shortfall in the public shareholding spread of Microlink and it was expected to increase the shareholder base and public float of Microlink. Currently the public shareholding spread of Microlink is 20.84%.

Following the distribution, Omesti will hold 75.09% to 76.47% equity interest in Microlink.

The original cost of investment of its Microlink shares was about RM62.23mil.

The proposed distribution is subject to the approval of Omesti's shareholders at an EGM to be convened.
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