I am happy with the par value reduction to off-set KTB’s accumulated losses of Rm148,628,000. This is a likely exercise undertaken by companies and of this year by KNM, to put them on a profitable financial footing. In KTB’s case, it will place them on a firm financial footing with an accumulated profit of RM 12,490,939 after the capital reduction exercise. There will virtually be no change in the existing number of 402,797,348 ordinary shares in issuance; shareholders funds; no eps dilution; NTA; or even any adjustment to the market price of the existing KTB shares quoted on Bursa. Just basic accounting entries to eliminate the accumulated losses: DR SHARE CAP (Rm), CR RETAINED EARNINGS with the par value reduction of 40c per share. Book balanced. The unchanged existing ordinary shares of 402,797,348 will be @Rm 0.10 par value instead of 50c par after the capital reduction exercise . As for their ‘proposed’ renounceable rights issue of 604,196,022 shares, on the basis of three (3) Rights Shares for every two (2) New KTB Shares held on the Entitlement Date., listing of and quotation for the rights shares are expected to be completed by the first quarter of calendar year 2015.. 75% of the ‘proposed’ renounceable rights issue of 604,196,022 shares, amounting to 453,147,016.50 shares @0.10c, valued at Rm 45,314,701.65 will be subscribed by the majority (75%) stakeholders. They have provided an irrevocable written undertaking to subscribe in full for their respective entitlements in respect of their direct shareholdings in KTB. The minority stakeholders take up 25% or 151,049,005.50 rights@0.10c, valued at Rm 15,104,900.55.
The majority shareholders' financial commitment is there and higher. My 2 cents
Hey guys. Careful on monday. Market lembik. Many dah koyak. That's why many blogs come out condemn helpful people like bones n calvintan. 66cc jutaland only. Hoping to let go some others from freezer. Huhuhu
Ohkns, Monday school re-open. Market start to bullish and budget rally soon. Bnm have maintain opr rates, Scotland no to indenpandent n us have postponed interest hike until end of next year. If you need to dispose your stock, always choose on Monday. My 2 cents. Good luck.
Dear friends, you may consider to buy MSPORTS (Stock Code: 5150) to get quick buck in short term bcoz it's going to announce the ex-date of bonus issue of 1 free warrants with 2 existing shares after EGM on coming Thursday (25 Sept 2014). TP before Ex-date is 30 cents. Trade at your own risk!
Aiyo, got stranded in Holland due to konsortium bas. Finally decided to jump out bleeding badly. Luckily covered by other stocks in my fridge, on paper, huhuhu
This book is the result of the author's many years of experience and observation throughout his 26 years in the stockbroking industry. It was written for general public to learn to invest based on facts and not on fantasies or hearsay....
Posted by hepitrade > 2014-01-02 18:04 | Report Abuse
What say you, bro & sis ?