Update Deleum proposes 1-for-3 bonus issue and 1-into-2 share split

by **Cals** Tue 11 Mar 2014, 22:48

Update Deleum proposes 1-for-3 bonus issue and 1-into-2 share split

Business & Markets 2014

Written by Ho Wah Foon of theedgemalaysia.com

Tuesday, 11 March 2014 19:30

KUALA LUMPUR (March 11): Deleum Bhd is proposing a one-for-three bonus issue of 50,000,000 new ordinary shares of RM1.00 each.

The a provider of specialised products and services in the oil and gas industry has also proposed a one-into-two share split, subdividing every one share held in Deleum into two new shares of RM0.50 each.

“The proposed bonus issue and proposed share split will be implemented simultaneously with the bonus shares to be allotted and issued in the form of subdivided shares,” said the company in a late press statement.

Deleum’s group managing director Nan Yusri Nan Rahimy said the bonus issue was aimed at rewarding our shareholders for their loyalty and support.

“This exercise will also enable them to have a greater participation in the equity of the company in terms of number of shares held whilst maintaining their percentage of equity interest.

“In addition, the proposed share split is expected to enhance the marketability and trading liquidity of Deleum’s shares…This proposed share split exercise will also result in an adjustment to the market price of Deleum’s shares to a more affordable entry price to appeal to a wider group of investors,” added Nan Yusri.

Nan Yusri also said Deleum has proposed the establishment of a Long Term Incentive Plan of up to 10% of the issued and paid-up share capital of the company for the executive directors of Deleum and the key employees of Deleum Group.

The duration of the proposed plan shall be in force for a period of ten (10) years commencing from its effective date of the implementation.