Al­liance Bank takes over listed sta­tus in re­vamp

The Sun (Malaysia) - - SUNBIZ -

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.

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