Tan­jung Off­shore pro­poses par value re­duc­tion, Esos

The Sun (Malaysia) - - SUNBIZ -

PE­TAL­ING JAYA: Tan­jung Off­shore Bhd has pro­posed to un­der­take a par value re­duc­tion to wipe out its ac­cu­mu­lated losses and put the group on a bet­ter fi­nan­cial po­si­tion for any fundrais­ing exercise in the future.

It has also pro­posed a new em­ploy­ees’ share op­tion scheme (Esos) of up to 10% of the share cap­i­tal of the com­pany for el­i­gi­ble ex­ec­u­tive di­rec­tors and em­ploy­ees.

In a fil­ing with Bursa Malaysia yes­ter­day, Tan­jung Off­shore said it would cut its par value of 50 sen by 40 sen.

It ex­plained that the cur­rent mar­ket price of Tan­jung shares have been trad­ing be­low its ex­ist­ing par value of 50 sen on Bursa Se­cu­ri­ties, which is not con­ducive for Tan­jung to em­bark on any fund rais­ing exercise and/ or cor­po­rate exercise in­volv­ing new is­suance of shares.

Mean­while, the pro­ceeds from the Esosop­tions are in­tended to be utilised for Tan­jung Group’s work­ing cap­i­tal re­quire­ments. The es­ti­mated ex­penses for the pro­pos­als amounts to RM230,000, which would be funded via in­ter­nally gen­er­ated funds.

The pro­pos­als are con­di­tional upon ap­provals be­ing ob­tained and are ex­pected to be com­pleted by the first quar­ter of 2017.

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