The Sun (Malaysia)
Thrive plans capital reduction to cut accumulated losses
PETALING JAYA: Thrive Property Group Bhd has proposed a capital reduction exercise to reduce or eliminate the accumulated losses of the company which stood at RM96.31 million as at July 31, 2014.
The exercise involves the cancellation of 7.5 sen from the par value of every 10 sen shares and the proposed reduction of the share premium account of RM1.79 million.
In a filing with the stock exchange, Thrive said the proposed capital reduction provides the company with the opportunity to rationalise its financial position by reducing the accumulated losses of the company to the extent possible.
“The reduction of accumulated losses in the statements of financial position of the company and the group will enhance its credibility with the bankers, customers, suppliers, investors and other stakeholders and also provide a better financial platform for the group’s future growth moving forward,” it said.
In addition, the proposed par value reduction will also provide the company with greater flexibility to raise funds at a more attractive price and to implement future corporate exercises, which entail the issuance of equity and equity-related securities including, among others, ordinary shares and convertible securities, thus enabling Thrive to take advantage of future fund raising opportunities as and when the need arises.
“In undertaking the proposed capital reduction, the company and its subsidiaries has also considered that it would not result in any change to its net asset position,” it said.
It added that the exercise will not have any effect on the consolidated earnings and earnings per share of Thrive.
The company expects the proposals to be completed in the first quarter of 2016 following obtaining shareholders approval at an EGM to be convened.