Sino­top pro­poses cap­i­tal re­duc­tion, re­pay­ment and di­ver­si­fi­ca­tion

The Sun (Malaysia) - - SUNBIZ -

PETALING JAYA: Sino­top Hold­ings Bhd is propos­ing a cap­i­tal re­duc­tion and re­pay­ment, share con­sol­i­da­tion and di­ver­si­fi­ca­tion of its ex­ist­ing core busi­ness into pro­ject man­age­ment and in­fra­struc­ture con­struc­tion.

In a fil­ing with Bursa Malaysia last Fri­day, the com­pany said the pro­posed cap­i­tal re­duc­tion and re­pay­ment will give rise to a credit of about RM276.43 mil­lion, which would be used to set off against the ac­cu­mu­lated losses and for cap­i­tal re­pay­ment to the share­hold­ers.

The can­cel­la­tion of 14 sen of the par value of each ex­ist­ing Sino­top share, will see 12.49 sen per share set off against the ac­cu­mu­lated losses of the com­pany and 1.51 sen per share re­paid to Sino­top share­hold­ers.

Sino­top is also propos­ing a share con­sol­i­da­tion of the com­pany’s is­sued and out­stand­ing or­di­nary shares at a ra­tio of five or­di­nary shares of 6 sen each (af­ter the pro­posed cap­i­tal re­duc­tion and re­pay­ment) to one con­sol­i­dated share of 30 sen each.

The pro­posed share con­sol­i­da­tion would re­sult in the ex­ist­ing 1.97 bil­lion or­di­nary shares be­ing con­sol­i­dated into 394.90 mil­lion or­di­nary shares.

The China-based fab­ric man­u­fac­turer pro­poses to di­ver­sify its core busi­ness to in­volve pro­ject man­age­ment and in­fra­struc­ture con­struc­tion-re­lated busi­nesses via its 100% sub­sidiary com­pany Gor­geous Gold­hill Sdn Bhd.

At pre­senty, the group is prin­ci­pally in­volved in the pro­duc­tion of cus­tomised wo­ven loom-state fab­rics made from cot­ton, syn­thetic and mixed yarn. It pri­mar­ily de­rives its rev­enue from China, which con­trib­uted 91.59% to its rev­enue last year.

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