Unico-Desa to list ELK-Desa after 1-for-10 distribution

KUALA LUMPUR: Unico-Desa PLANTATION []s Bhd has proposed to distribute shares in its unit ELK-Desa Resources to all shareholders on a one-for-10 basis under a corporate exercise which would involve in the listing of ELK-Desa.

Unico-Desa said on Tuesday, July 19 it had also proposed a restricted offer for sale of the remaining shares in ELK-Desa after the proposed distribution.

It also proposed to list ELK-Desa on the Main Market of Bursa Securities.

“The proposed distribution would involve a distribution of approximately 86.506 million ELK-Desa Resources shares representing approximately 86.51% equity interest in ELK-Desa Resources to Unico-Desa shareholders,” it said.

Unico-Desa said assuming all the treasury shares held are disposed in the market and/or distributed to the shareholders of Unico-Desa, the proposed distribution will involve 88.32 million ELK-Desa Resources shares to be distributed to the shareholders of Unico-Desa.

“In conjunction with the proposals, ELK-Desa Resources will undertake a proposed bonus issue of RM50 million comprising 50 million ordinary shares of RM1 each to facilitate the proposed distribution. The proposed bonus issue is inter-conditional upon the proposals,” it said.

On the proposed listing of ELK-Desa Resources, it said ELK-Desa Resources is proposing a public issue of 25 million new shares of RM1 each, representing 20% of the enlarged issued and paid-up share capital of ELK-Desa Resources.

The issue price per new ordinary share in ELK-Desa Resources will be determined at a later date. ELK-Desa Resources would then list its enlarged issued and fully paid-up share capital of 125 million shares of RM1 each on the Main Market of Bursa Securities.