Alliance Bank takes over listed status in revamp
PETALING JAYA: The listing status of Alliance Financial Group Bhd (AFG) will be transferred to Alliance Bank Malaysia Bhd as part of the group’s reorganisation exercise.
In a filing with the stock exchange yesterday, AFG said the reorganisation will involve, among others, the AFG shareholders exchanging their existing shares for Alliance Bank shares on a one-for-one basis, where their number of shares held and percentage shareholdings in AFG will be the same in Alliance Bank.
In conjunction with the reorganisation, AFG’s wholly owned subsidiary Kota Indrapura Development Corp Bhd (KIDC) will undertake a capital reduction and repayment exercise, involving an indicative cash distribution of RM44.22 million by KIDC to AFG via the cancellation of 97 sen for every ordinary share of RM1 in KIDC.
At the same time KIDC will declare and pay a dividend of RM1.67 million to AFG. Upon the completion of the exercise, AFG is expected to receive total cash of RM45.89 million.
AFG will then subscribe for an indicative 96 million new Alliance Bank shares at par value using part of the cash balance in its books of RM50.11 million, and the total cash of RM45.89 million from the capital reduction and repayment.
Meanwhile, Alliance Bank will undertake a bonus issue to increase its issued and paid-up share capital to the level of AFG.
The corporate exercise is expected to be completed by the second quarter of 2017.