Concrete Engineering proposes two-for-three bonus issue

PETALING JAYA: Concrete Engineering Products Bhd has proposed a two-for-three bonus issue of 29.85 million shares held by entitled shareholders.

The board is of the view that the proposed bonus issue is the most appropriate avenue of rewarding the existing shareholders while at the same time enhance the company’s capital base as the exercise will enlarge the number of shares in the company without increasing the percentage equity interest.

It will also provide marketability and trading liquidity of the shares on the Main Market of Bursa Securities; and enable the company to utilise the credit amount which has been transferred from the share premium account to the share capital account within the timeframe allowed.

However, there will be a corresponding dilution in the earning per share of the group as a result of the increase in the number of shares in issue upon completion of the proposed bonus issue.

The proposed bonus issue is subject to approvals being obtained from Bursa Securities; as well as the shareholders of the company at an EGM to be convened.

The application to Bursa Securities is expected to be made within two months. Barring any unforeseen circumstances, the exercise is expected to be completed by the first quarter of 2019.

Concrete Engineering Products is principally engaged in manufacturing and distribution of prestressed spun concrete piles and poles.

Source: TheSunDaily