Tanco proposes 80% capital reduction

Tanco proposes 80% capital reduction
Business & Markets 2013
Written by Ho Wah Foon of theedgemalaysia.com
Monday, 09 September 2013 19:07

KUALA LUMPUR (Sept 9): TANCO HOLDINGS BHD [] has proposed to reduce its issued and paid-up share capital comprising 334,886,726 ordinary shares of RM1.00 each via the cancellation of RM0.80 from the par value of each of the existing ordinary share of RM1.00.

After the capital reduction, the par value of each share will be reduced to 20 sen per unit and the total paid up capital of the company cut to RM66.97 million from RM334.88 million, the company told Bursa.

However, the proposed par value reduction will give rise to a credit amount of about RM267,909,381.

The company said it intends to use part of the credit amount to set-off the accumulated losses of Tanco and the group. The remaining credit after the set-off will be credited to the distributable reserves account.

As at end-June 2013, the Tanco Group has an audited accumulated losses of approximately RM142.21 million, which is expected to be fully offset against the credit arising from the proposed par value reduction.

In addition to par value reduction, Tanco has also proposed a rights Issue of ICULS, to be undertaken on a renounceable basis, to raise at least RM15 million.