KUALA LUMPUR: Cash rich Abric Bhd plans to distribute 43 sen a share totaling RM63.90mil to its shareholders under a corporate exercise which will lead to its delisting from Bursa Malaysia Securities.
Abric, which is a Practice Note 16 company, had on Monday proposed a capital reduction and repayment exercise and a special cash dividend.
On Dec 16, 2014, the company was classified a cash company after it had received substantial cash proceeds from the sale of its entire core business.
Since then, Abric had been actively trying to identify suitable business opportunities to regularise its condition.
It said Bursa Securities had given it up to June 10, 2016 to submit a regularisation plan to the Securities Commission. However, the board had considered numerous business opportunities to regularise its PN16 condition and felt it was appropriate to distribute the company’s assets back to its shareholders.
“Accordingly, the proposed distribution and de-listing represents an expedient way to distribute substantially all the company’s cash reserves back to its shareholders pending completion of the winding-up process,” it said.
Abric said based on its paid-up capital as at Jan 15, 2016 comprising 140.51 million shares and 8.06 million outstanding warrants 2011/2016, the proposed distribution and de-listing will be up to RM63.9mil.
“The company intends to fund the proposed Distribution and de-listing through its existing cash reserves, including its cash reserves placed in the custodian account,” it said.
Trading was suspended on Monday and its last trading price was 51 sen.
Recall in its 2013 annual report, Abric noted that it was a leading security seal provider selling to 88 countries.
The company, established in 1983, has a patent for a security seal which was initially used for the plantation industry in Malaysia. The security seal design is now a global industry standard.
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