Goldis waives right to retain IGB dividends

Mid Valley Megamall, taken from helicopter. IZZRAFIQ ALIAS / The Star. July 2, 2017.

KUALA LUMPUR: Goldis Bhd, which is seeking to take subsidiary IGB Corp Bhd private, has sweetened its offer for the remaining IGB shares it does not own by waiving its right to all dividends and/or distributions declared, paid or made after the date of its Feb 23 proposal letter.

IGB Corp, the developer of Mid Valley City, told Bursa Malaysia that it had received a letter from Goldis on Thursday stating that the scheme shareholders would now be entitled to retain any dividend that IGB might declare, make or pay for this financial year ending Dec 31, 2017 (FY17), prior to the date of sanction of the proposed scheme by the High Court.

“For the avoidance of doubt, notwithstanding the waiver set out above, Goldis will not reduce the offer price by an amount equivalent to the net dividend for each IGB share which the scheme shareholders are entitled to retain,” it said.

“Similarly, if Goldis declares, makes or pays any dividend before the consideration shares and the consideration new RCCPS (redeemable convertible cumulative preference shares) are issued, the consideration shares issue price and the consideration new RCCPS issue price will not be reduced by an amount equivalent to the net dividend for each consideration share or consideration new RCCPS that the scheme shareholders are not entitled to.”

(Earlier this month, Goldis declared a first interim dividend of 2 sen per share for FY17. IGB, which paid an interim dividend of 10% for FY16 on March 17, has not declared any interim dividend for FY17.)

All other terms and conditions to the proposed scheme as set out in the proposal letter dated Feb 23 and as revised by the revised proposal letter dated June 30 remain the same.

The proposed scheme offers RM3 for each IGB share held, to be settled by either one of three options that the scheme shareholders can choose (100% cash, 30% cash and 70% Goldis shares, and 12% cash and 88% new Goldis RCCPS).

Goldis directly holds 73.43% of IGB’s share capital (excluding treasury shares). The Employees Provident Fund is the second largest shareholder with a 5.02% stake.

Kenanga Investment Bank Bhd, was appointed on April 14 as independent adviser on the proposed scheme. IGB has not posted any advice from Kenanga IB to-date on Bursa Malaysia's website on whether shareholders should accept or reject the offer. 

IGB shares closed unchanged at RM2.83 on Thursday.