Published: Friday June 15, 2012 MYT 12:57:00 PM
ECM Libra proposes capital repayment, including RM442m cash
KUALA LUMPUR: ECM Libra Financial Group Bhd (ECMLFG) has proposed a capital repayment of RM442.64mil cash to its shareholders following the disposal of its investment banking business to K&N Kenanga Holdings Bhd in return for RM875.1mil in cash, stocks and loan stocks.
ECM Libra said on Friday it would also undertake a distribution-in-specie of 120 million Kenanga shares and RM47.75mil of nominal value of redeemable non-convertible unsecured loan stocks of Kenanga.
It added it would undertake a share split of ECMLFG shares after the proposed capital repayment, to facilitate the proposed share consolidation.
After the completion of the share split, ECMLFG shares shall be consolidated into ordinary shares of RM1 each in ECMLFG.
"The issued and paid-up share capital of ECMLFG after the proposed share split will be consolidated into RM265.222mil comprising 265.22mil ordinary shares of RM1 each under the minimum scenario and RM337.73mil comprising 337.73mil ordinary shares of RM1 each under the maximum scenario," it said.
ECMLFG said the proposed disposal and proposed business merger were timely.
"The board is of the view that as a stand-alone mid-size investment bank, the prospects of the bank will be challenging. Therefore, the proposed disposal provides an opportunity for ECMLFG to exit the industry," it said.
ECMFLG said the proposed capital restructuring was to return the proceeds received from the proposed disposal to the shareholders of ECMLFG.