Boustead plans 20% dividend-in-specie of Pharmaniaga shares

KUALA LUMPUR: BOUSTEAD HOLDINGS BHD [] has proposed a corporate exercise to reduce its current stake of 97.81% in PHARMANIAGA BHD [] which includes a dividend-in-specie, restricted offer for sale, divestment and bonus issue.

Boustead said on Wednesday, July 6 the exercise was to comply with listing requirements and it expected the proposals “will have a positive value creation for existing shareholders of Boustead and Pharmaniaga”.

The exercises consisted of a proposed distribution of a 20% dividend-in-specie, equivalent to 16.01 million Pharmaniaga shares held by Boustead, to existing Boustead shareholders on the basis of one Pharmaniaga share for every 57.5 BHB shares held.

“The gross value of this dividend-in-specie will be in excess of RM94 million, representing RM5.75 per Pharmaniaga share. Shareholders of Boustead who hold less than 5,750 BHB shares will receive cash in lieu of their entitlement of Pharmaniaga shares under the proposed dividend-in-specie scheme,” it said.

Boustead also proposed a restricted offer for sale of the 16.28 million Pharmaniaga shares which it held to all Boustead shareholders excluding Lembaga Tabung Angkatan Tentera (LTAT).

It would also divest 13.5 million Pharmaniaga shares which it owned, to be sold for RM5.75 per Pharmaniaga share to LTAT, Boustead directors and employees as well as identified investors.

“As a result of the proposed restricted offer for sale and the proposed divestment, Boustead will raise gross proceeds of up to approximately RM93.6 million from the restricted offer for sale and RM77.6 million from the proposed divestment. The combined proceeds of RM171.2 million will be utilised to pare down BHB’s current gearing,” it said.

Its proposed bonus issue would involve the issuance of 94.01 million bonus shares on a one for 10 basis.

Pharmaniaga will also undertake a bonus issue of up to 10.69 bonus shares on a one for 10 Pharmaniaga shares.