Scomi Marine Bhd plans to undertake par value reduction of 55 sen, only 18.5 sen per share to be repaid to shareholders, remainder would be used to set off accumulated losses

(SCOMIMR closing stock price yesterday (3.5.2012) was 39 sen)

Scomi Marine Bhd plans to undertake a capital repayment to shareholders amounting to RM135.60mil or 18.5 sen a share.

It said on Thursday, the corporate exercise would involve the reduction of the par value of the shares from RM1 each to 45 sen by canceling 55 sen from each share.

The reduction in par value would give rise to about RM525.07mil, of which RM135.60mil would be paid out to the shareholders.

Scomi Marine said the remainder of the amount would be used to set off the entire accumulated losses. As at Dec 31, 2011, its accumulated losses were RM362.04mil.

"The proposal will allow the company to reward its shareholders for their continued support towards the Scomi Marine Group by way of distributing the proceeds. The proposal will also allow Scomi Marine to eliminate the entire accumulated losses of the company, which would result in a better financial position of Scomi Marine before the company embarks on the proposed rationalisation exercise," it said.

Source: www.thestar.com.my