Stone Master issues shares to settle debt Posted on 11 February 2016 - 05:37am Print PETALING JAYA: Stone Master Corporation Bhd (SMCB) has issued 7.65 billion settlement shares at a price of 40 sen to settle RM3.06 billion outstanding debt owed to 25 creditors.
SMCB said it executed 25 settlement agreements with each of the respective creditors yesterday.
Except for its two major shareholders, executive chairman Datuk Eii Ching Siew and deputy managing director Datin Chan Chui Mei, the other 23 creditors had agreed to relinquish their right as shareholders of SMCB.
"Despite a dilutive effect on the existing shareholders' shareholdings in SMCB as a result of issuance of the settlement shares, the proposed special issuance is expected to have the following positive effects: (a) reduce SMCB's debt without any cash outflow; (b) the equity base and net assets of SMCB will be enhanced; and (c) enable SMCB to improve its financial results," it said.
This is the first innovative financial tools to pay chinese vendors n benefit local chinese listed entities thru VFA with the positive effects of (a) , (b) n (c)...kudos to DCT
note that the chinese vendors have no board representation, voting rights and share of dividends..hopefully it will be positive to existing shareholders
85 times current share cap? Serious? How much can we expect price to fall?
KUALA LUMPUR: Stone Master Corp Bhd will experience a massive shareholding dilution should its shareholders approve the board’s proposal to issue some 7.6 billion shares for RM1.33 billion worth of building fixtures’ supply from China.
The new shares to be issued are equivalent to almost 85 times their current issued share capital of 89.9 million shares.
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Kc Choy
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Posted by Kc Choy > 2015-12-28 12:51 | Report Abuse
Aiyah ...I want a peaceful holiday ...