ECM (2143) - ECM Libra to distribute cash and E&O shares totalling RM320m


KUALA LUMPUR: ECM Libra Financial Group Bhd’s shareholders will receive a windfall following its plans to distribute RM320mil in cash and securities of Eastern & Oriental Bhd.

Under the corporate exercise announced on Monday, it proposed a share capital reduction of about RM234.74mil or 88 sen per share of par value of RM1 each in ECM Libra.

It added the remaining amount of RM85.36mil or 32 sen per ECM Libra share would be via a proposed special dividend.

Currently, ECM Libra’s Libra Strategic Opportunity Fund holds the E&O securities totaling 64.083 million E&O shares and 40 million E&O warrants with a total market value of RM129.19mil. The average price is  RM1.81 for the shares and 33 sen for the warrants.

“The proposals are consistent with the objectives of ECM Libra’s capital management framework which includes returning cash in excess of ECM Libra’s requirement to shareholders, after taking into consideration ECM Libra’s level of operations, cash, business prospects, investment plans as well as current and expected obligations,” it said.

ECM Libra said the group’s audited shareholders funds were at RM448.45mil as at Jan 31, 2015. It added shareholders would benefit more via the redeployment of capital to shareholders.

 ECM (2143) - ECM Libra to distribute cash and E&O shares totalling RM320m

ECM (2143) - ECM Libra to distribute cash and E&O shares totalling RM320m
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