Published: Thursday February 7, 2013 MYT 8:12:00 PM

Toyo Ink to go ahead with bonus issue, amendments

By Joseph Chin

KUALA LUMPUR: Toyo Ink Group Bhd will go ahead with its corporate exercises involving a bonus issue and the Memorandum and Articles of Association Amendment, which had faced opposition from several parties.

It said on Thursday the board has resolved to proceed with the corporate exercises approved by its shareholders at the EGM on Dec 3, 2012.

Toyo Ink said it made the decision after the hearing and judgement granted by the High Court of Malaya, Kuala Lumpur on Jan 22. It had also received the legal opinion by the company's solicitors, Messrs. Ranjit Singh & Yeoh following an interim injunction order.

To recap, the corporate exercises included a renounceable rights issue of up to 42.80 million new shares with up to 42.80 million free new warrants at an issue price of RM1.20 per rights share.

This was on the basis of one rights shares and one warrant for every share held as at Jan 16. This was also upon full acceptance based on a minimum subscription of 20.41 million rights shares.

Toyo Ink had also proposed a bonus issue of up to 21.40 million shares on a one new share for every two rights shares.

However, Toyo Ink had on Jan 16 announced it was served with an ex-parte injunction and an originating summons from Expo Holdings Sdn. Bhd, Deliblossom Sdn Bhd, Ee Chong Pang, Foong Lai Yue and Yim Yoke Yee who opposed the bonus issue and amendment to the Memorandum & Articles of Association.

They had sought a declaration that these two resolutions tabled before the EGM be declared null and void and sought an order that all the ordinary shareholders be treated equally according to their respective shareholding rights and to be issued or to receive the bonus shares proportionately to their equity holding without any conditions attached to the bonus shares.

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