KPJ Healthcare shareholders give nod to proposed bonus, rights issues

by **Cals** Thu 28 Nov 2013, 18:34

Business & Markets 2013

Written by Bernama

Thursday, 28 November 2013 17:30

JOHOR BAHARU (Nov 28): KPJ Healthcare Bhd's shareholders today approved the company's proposed bonus issue and renounceable rights issue with free warrants, proposals that are strategic for its long-term growth.
KPJ Healthcare chairman Datuk Kamaruzzaman Abu Kassim said the proposed bonus issue would be capitalised from the company's share premium and retained earnings accounts to reward existing shareholders for their loyalty and continuing support.I
n addition, he said the proposed rights issue would enable the company to raise funds for its continuous expansion and growth plans, raise equity capital and strengthen its capital base as well as potentially increase the group's market capitalisation.
"The new warrants are expected to provide KPJ shareholders with further investments at an attractive conversion price," he said after the company's extraordinary general meeting (EGM) here today.
KPJ Healthcare has proposed a bonus issue of up to 329.77 million new shares of RM0.50 each on the basis of one bonus share for every two existing shares held on an entitlement date to be determined later.
It has also proposed a renounceable rights issue of up to 43.97 million new shares on a one-for-15 basis, together with up to 87.94 million free detachable new warrants 2013/2018 on the basis of two new warrants for every one rights share subscribed.
"KPJ shareholders who are entitled to participate in these proposals will benefit from the future growth of the company and any capital appreciation arising from it," Kamaruzzaman said.
At the EGM, shareholders had also approved the proposed increase in the company's authorised capital from RM500 million comprising one billion shares of 50 sen each to RM750 million comprising 1.5 billion shares of 50 sen each.