KUALA LUMPUR: HUA YANG BHD [] has proposed a bonus issue of 36 million shares on a one-for-three basis.

The company said on Thursday, July 14 it expects the corporate exercise to be completed in the second half of 2011.

Based on the paid-up share capital of RM108 million comprising of 108 million shares, the bonus issue would involve the issuance of 36 million shares.

'The proposed bonus issue aims to reward the existing shareholders of the company for their loyalty and continuing support, by enabling them to have a greater participation in the equity of the company in terms of number of shares held, whilst maintaining their percentage of equity interest,' it said.

Hua Yang also said the proposed bonus Issue was expected to improve the trading liquidity of the shares and increase the capital base.