UP proposes one-for-one bonus issue

KUALA LUMPUR: United Plantations Bhd (UP) has proposed a bonus issue of 208.13 million new shares on the basis of one bonus unit for each existing share held.

In statement to Bursa Malaysia yesterday, UP said all Treasury shares in the company will be entitled to the bonus shares and such bonus shares will be treated as Treasury shares to be held by the company.

“The board intends to undertake the proposed bonus issue to reward existing shareholders  in the form of  bonus shares for their loyalty and continuing support. The proposed bonus issue serves to increase the number of UP shares held by the shareholders with no cash outlay by the shareholders, while maintaining their percentage of equity shareholding held in the company.

“In addition, the proposed bonus issue may: i) potentially result in an improved trading liquidity of UP shares traded in the market at an affordable share price without affecting the size of the market capitalisation of the company; and ii) encourage greater participation by investors as well as potentially broadening the shareholder base of the company,” it said.

AmInvestment Bank has been appointed as the principal adviser for the proposed bonus issue.

In separate filings yesterday, UP declared combined final and special dividends amounting to RM1.05 a share for the financial year ended Dec 31, 2019 (FY19) despite reporting full-year group net profit and revenue drop from a year earlier. UP declared a final dividend of 20 sen a share and special dividend of 85 sen a share. The ex-date for the dividends is April 27, 2020 and payment May 8, 2020.

According to UP’s annual report, which was filed with Bursa yesterday, UP’s FY19 group net profit fell 23.9% to RM283.29 million from RM372.42 million a year earlier, while revenue dropped 10.1% to RM1.17 billion from RM1.31 billion.