The Board of Directors pursuant to the Company's Constitution, recommends a final cash dividend of 2.40 sen per ordinary share in respect of the current financial year for approval of the shareholders at the forthcoming Annual General Meeting.
BSL Corp Bhd’s latest renounceable rights issue may yield returns that are more than double than what investors are paying, an industry observer said. KUALA LUMPUR: BSL Corp Bhd's latest renounceable rights issue may yield returns that are more than double than its issued price, an industry observer said.
BSLCorp is undertaking a renounceable right issue of 12 rights shares with five free warrants for every two existing shares at the issue price of 5.5 sen each.
Universiti Teknologi MARA (UiTM) senior lecturer at the Management and Business Faculty Wan Mohd Farid Wan Zakaria said subscribers of the rights issue would be able to reap the reward from the heavily discounted offer price of BSLCorp shares at 5.5 sen.
"The issue price of 5.5 sen per rights share represents a discount of 5.5 sen from BSLCorp's last traded price of 11 sen on Monday. Thus, for every subscription of 12 rights shares, subscribers will receive 12 times the discount of 5.5 sen, which is equivalent to 66 sen.
"For every subscription of 12 rights share, they will get five free warrants, which can be conservatively trading at its intrinsic value of 5.5 sen, being the difference between BSLCorp share price of 11 sen and its exercise price of 5.5 sen," Farid explained.