Published: Monday July 16, 2012 MYT 1:33:00 PM
Media Chinese International extends trading suspension
KUALA LUMPUR: Media Chinese International Bhd (MCIL) has sought an extension in the trading suspension until the close of market trading on Monday.
MCIL said on Monday the request for a trading suspension from midday last Friday until 5pm on Monday was pending the release of an announcement.
OSK Research quoted a news report that the company might undertake a capital repayment programme that it may see its shareholders being rewarded with a bumper dividend of 40 sen per share, which works out to a sum of RM680mil.
However, the research house said while MCIL was highly likely to announce some form of capital repayment, it was unlikely to be 40 sen per share.
"However, going by its huge cash file of RM412.6mil or 24 sen per share as of end March 2012, we think 40 sen per share of capital repayment is excessive.
"If it pays out this amount, the entire sum will come up to RM680mil, meaning that the group will need to borrow to do the capital repayment, which we believe is unlikely," OSK Research said.