Lion Corp gets Bursa nod to list 950m new shares

KUALA LUMPUR (Jan 5): LION CORPORATION BHD [] has received Bursa
Malaysia Securities Bhd's approval to list up to 950 million new shares
to settle the overdue amount owed by its 79% subsidiary Megasteel Sdn
Bhd.

The company said on Thursday Bursa Securities had also approved the proposed share consolidation.

However, the approvals were subject to conditions, wherein Lion Corp
must fully comply with the relevant provisions under the Main Market
Listing Requirements of Bursa Securities.

To recap, the 950
million new shares was to settle the RM950 million due by Megasteel to
the unsecured trade creditors with an overdue amount of RM500,000 and
above as at April 30, 2011.

This settlement would involve the
issuance of one new share at par value of RM1 Lion Corp share and
deferred cash payment of 20 sen for every RM1 of the overdue amount.

Lion Corp had said the proposed capital reCONSTRUCTION [] involved the
proposed reduction of the par value of the existing LionCorp shares of
RM1 each to 20 sen each by cancelling 80 sen.

This would be
followed by the proposed consolidation of every five Lion Corp shares of
20 sen each into one share of RM1 each after the capital reduction was
completed.