Monday, April 26, 2010

Top Glove Proposes Bonus Issue

From what i wrote on April 4th, and March 15th

AND NOW !!!, YES, it is bonus issue 1 for 1 for topglove, YEAH !!!

KUALA LUMPUR, April 26 (Bernama) -- Top Glove Corporation Bhd, the world's largest rubber glove manufacturer, proposes to undertake a bonus issue of up to 347.998 million new shares of RM0.50 each.

The issue is on the basis of one new share for every one existing share held on an entitlement date, to be determined later.

It also proposes to increase its authorised share capital from RM200 million comprising 400 million shares to RM400 million comprising 800 million Shares.

The proposed bonus issue shall be wholly capitalised from the company's share premium, it said in a filing with Bursa Malaysia Securities today.

Based on the audited financial statements of Top Glove as at August 31, 2009, the consolidated share premium of Top Glove stood at RM243.677 million.

It said the bonus shares will, upon allotment and issuance, rank pari passu in all respects with the then existing shares.

However, the new shares will not be entitled to any dividends, rights, allotments and/ or other distributions that may be declared, made or paid prior to the allotment and issue of the bonus shares.

On the rationale and justification for the proposal, Top Glove said it is currently the most appropriate avenue for the company, as it will reward existing shareholders by enabling them to have greater participation in its equity in terms of the number of shares held.

It also said the bonus issue enlarges the number of shares held by the company's existing shareholders, without increasing the percentage equity interest while improving the liquidity of shares on Bursa Malaysia Securities with a larger capital base.

Barring any unforseen circumstances, the application to the relevant authorities, in particular Bursa Malaysia Securities, will be made within one month from today, Top Glove said.

It expects the proposal to be completed by the third quarter of 2010.


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