KUCHING: Pansar Bhd is rewarding its shareholders for the second time within 12 months with a proposed bonus issue.
The proposed bonus issue will involve the issuance of up to 231 million new shares on the basis of one bonus share for every two existing shares held on an entitlement date to be determined later.
In June 2018, Pansar completed the issuance of 154 million free (bonus) warrants on the basis of one warrant for every two existing ordinary shares. The warrants, which expire on June 6, 2023, have an exercise price of 95 sen.
Pansar said the proposed bonus issue would be undertaken via the enhanced bonus issue framework (no par value regime).
“Pursuant to the enhanced bonus issue framework, the bonus shares will be issued as fully paid shares at nil consideration and without capitalisation from the company’s reserves.
“Accordingly, the proposed bonus issue of shares will increase the number of Pansar shares but will not increase the value of Pansar’s issued share capital,” the company said in a filing with Bursa Malaysia on Wednesday.
Pansar’s share capital current stood at 308 million shares, out of which some 2.68 million units are treasury shares. The company’s single largest shareholder is Pan Sarawak Holdings Sdn Bhd, which owns 201 million shares or 65.83 percent.
Pansar said the proposed bonus issue was to reward existing shareholders for their loyalty and continuing support.
It said the proposed exercise would potentially result in an improved trading liquidity of Pansar shares without affecting the size of the market capitalisation of the company.
The proposed bonus issue is expected to be completed by second quarter- 2019.
Pansar shares opened higher by 1.5 sen at 88 sen yesterday, giving the company a market capitalisation of some RM271 million. Pansar warrants are currently trading around 32 sen.
In third quarter to Dec 31, 2018 (3Q-2018), Pansar posted group net profit of RM898,000 on revenue of RM88.6 million, which were lower as compared to RM2.36 million and RM93.1 million respectively in 3Q-2017.
The group has six business segments – marine & industrial, building products, agro engineering, electrical & office automation, heavy equipment as well as mechanical & electrical.
