TH Heavy to pay dividend rate of 20% for ICPS-i

Tabung Haji injected RM275mil into TH Heavy via a rights issue exercise

KUALA LUMPUR: Loss-making TH Heavy Engineering Bhd, which has issued Islamic irredeemable convertible preference shares (ICPS-i) has proposed to pay a total dividend rate of 20% over the five-year tenure.

It said on Friday the payment would be at its discretion and availability of distributable profits during the tenure -- Year 1: 3.0%; Year 2: 3.5%; Year 3: 4.0%; Year 4: 4.5%; Year 5: 5.0% -- based on the nominal value of 25 sen an ICPS-i.

“The dividends, if declared, shall be payable annually in arrears, subject to availability of distributable profits,” it said. 

TH Heavy said although annual payments were anticipated, it may defer, in part or in whole, such payments subject to availability of distributable profits.

“For the avoidance of doubt, TH Heavy is not obliged to pay any dividends or deferred dividends, as the case may be, in the event it has insufficient distributable profits.

However, each ICPS-i will cease to receive dividends from and including the date the ICPS-i is converted into new TH Heavy shares.

The conversion price will be 25 sen each on a one-for-one basis and the period is five years. 

The ICPS-i will listed on Sept 14 and mature on Sept 7, 2020.

StarBiz reported TH Heavy is raising RM275mil from a rights issue exercise.

On Tuesday, Tabung Haji injected RM275mil into TH Heavy via a rights issue exercise that was overwhelmingly undersubscribed by other investors in the company. Tabung Haji is a substantial shareholder of TH Heavy, with a 29.81% stake.