Friday July 31, 2009
Lee refutes IOI Corp’s rights issue will affect dividend payouts
KUALA LUMPUR: IOI Corp Bhd does not expect its near-term dividend payouts to be affected by plans to raise up to RM1.22bil in a rights issue. Executive chairman Tan Sri Lee Shin Cheng denied the proposed 1-for-15 rights issue would affect the company’s ability to maintain its dividend payout.
“Not really. Well, if they (shareholders) are not happy, IOI can take it (the rights shares) up,” he said after the Third Annual Best Financial Institutions in South-East Asia Awards yesterday. For the financial year ended June 30, IOI declared an interim single tier dividend of 30%, or 3 sen per ordinary share.
In its filing with Bursa Malaysia last Thursday, IOI announced the rights issue of up to 421 million new shares at RM2.90 apiece. Lee confirmed that the fund raised would be kept for investment opportunities in related businesses of IOI and its subsidiaries, adding that IOI had not yet identified the opportunities.
Earlier, Lee received the “Best Corporate of the Year Award” on behalf of IOI at the awards ceremony.The only non-banking related award was to recognise IOI group’s ability to manage its plantation estates efficiently and generate value-driven returns above industry average not only for its shareholders but stakeholders, including its employees.
“I am very delighted to receive this award. I am always quoted as talking to the trees, so it looks like I have to continue talking to the trees to get another award,” Lee said.
Other awards went to local banks such as Public Bank Bhd, Malayan Banking Bhd (Maybank), CIMB Group and RHB Investment Bank.
Organised by Alpha South East Asia, a Hong-Kong based institutional investment magazine, the awards recognise the capabilities of local banks in South-East Asia.
Public Bank was named “Best Bank in Malaysia” for the third consecutive year. CIMB won six awards – “Best Private Wealth Management Bank”, “Best Broker”, “Best Cash Management Bank”, “Best Investment Bank”, “Best Bond House” and “Best Islamic Finance House”.
Maybank was ranked “Best Trade Finance Bank” while RHB Investment Bank swept the “Best Equity House” award.