Thursday, 11 February 2010

Tasek proposes 63c cash distribution for every share

Tasek proposes 63c cash distribution for every share

Written by Joseph Chin
Tuesday, 09 February 2010 19:13

KUALA LUMPUR: TASEK CORPORATION BHD [] has proposed to distribute 63 sen cash for every share held after it announced its earnings of RM16.24 million for the fourth quarter ended Dec 31, 2009.

It said on Tuesday, Feb 9 that net profit fell 22.7% from RM21.02 million a year while revenue declined 14.7% from RM143.25 million to RM122.07 million. Earnings per share were 8.75 sen versus 11.35 sen.

It proposed a final gross dividend of 10 sen per share, special gross dividend of 20 sen per shares and capital repayment of 33 sen cash.

Under the proposed capital repayment, the par value of the shares and preference shares would be reduced from RM1 to 67 sen per share.

"Subsequent to the proposed capital repayment, the resultant shares in Tasek of 67 sen each will be consolidated into RM1 per Tasek share on the basis of 1.49 shares of 67 sen each in Tasek into one share of RM1 each in Tasek," it said.

Tasek said the proposals were consistent with the objectives of Tasek's capital management framework which includes returning cash in excess of Tasek's requirement to shareholders to reflect the continuous effort of Tasek to achieve an efficient capital structure and to reward its shareholders for their continuous support of Tasek.

The decision was made after taking into consideration Tasek's level of cash, business prospects, projected levels of capital expenditure and other investment plans and current and expected obligations.

"Tasek believes that this is an opportune time to implement the proposals in tandem with its increased balance sheet strength and operational improvements," it said.

On the financial performance, it said the lower earnings were due to lower sales volume resulting from the contraction in demand for local cement and ready-mix concrete.

The group had not equity accounted its associates' results following the company's intention to dispose of the company's equity investment in the associates arising from a proposal from an existing shareholder to buy the said equity investment.

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