Friday 29 Mar 2024
By
main news image

KUALA LUMPUR (Oct 15): Diversified Gateway Solutions Bhd (DGSB) is proposing a share capital reduction exercise to wipe out its accumulated losses.

In a filing today, the group said the proposed capital reduction will result in the reduction of the share capital from RM160.05 million to RM60.05 million, which will give rise to a credit of RM100 million to be utilised to set off the accumulated losses of the group.

It said the reduced issued share capital will also reflect more accurately the value of the underlying assets and the financial position of the company. It said as at March 31, 2018, the company’s accumulated losses amounted to RM102.61 million.

“Further, the elimination of the accumulated losses from the statement of financial position of the company would ease the company to declare dividends from its future available profits and provide a better financial platform for the group’s future growth moving forward.

Additionally, the group is also proposing for the consolidation of every 2 existing shares into 1 new consolidated share held on an entitlement date to be determined late.

For illustration purposes, it said based on the last transacted market price of DGSB shares as at the last practical date, the theoretical adjusted reference price of the consolidated shares upon completion of the proposed share consolidation would be 11 sen from 5.5 sen.

It said the proposed share consolidation will improve the company’s capital structure by consolidating the existing DGSB Shares which will reduce the number of DGSB Shares available in the market.

DGSB shares gained 0.5 sen to close at six sen today, with 8.89 million shares done, for a market capitalisation of RM89.49 million.

      Print
      Text Size
      Share