Kuala Lumpur, May 12 – CAB Cakaran Corporation Bhd, a Bursa Malaysia Main Market listed integrated poultry producer, has announced that the Company has propose to undertake a share split involving the subdivision of every two existing shares into five split shares (Proposed Share Split), and a bonus issue of up to one bonus share for every four split shares (Proposed Bonus Issue).
The Proposals will take place based on an entitlement date to be determined later (Entitlement Date).
Under the minimum and maximum scenario (assuming full conversion from the existing warrants), the enlarged issued and paid-up share capital of the Company will be increased from 182,412,589 shares to 569,357,466 and 693,245,200 respectively.
In a filing to Bursa Malaysia, CAB Cakaran said that the Proposed Share Split is expected to enhance the marketability and trading liquidity of the Shares on the Main Market of Bursa Securities, as a result of the increase in the number of ordinary shares in issue.
Furthermore, the Proposed Share Split would result in an adjustment to the market price of CAB Shares, with a more affordable entry price, potentially appealing to a wider group of public shareholders and/ or investors to participate in the growth of the Company.
On the other hand, after a deliberation by the board of CAB Cakaran, the Proposed Bonus Issue is deemed the most appropriate avenue to reward existing shareholders of the Company, and at the same time enhance the Company’s capital base.
Barring any unforeseen circumstances and subject to the approvals of the relevant authorities being obtained, the Company expects the Proposals to be completed by the third quarter of 2017. The Proposals are also subject to the approvals shareholders of CAB Cakaran at an extraordinary general meeting to be convened for the shareholders of the Company.