The Sun (Malaysia)

Thrive plans capital reduction to cut accumulate­d losses

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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.

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