Friday 29 Mar 2024
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KUALA LUMPUR (May 3): Nationwide Express Courier Services Bhd (NECSB) has proposed internal reorganisation involving the exchange of all its 60.1 million of RM1 shares with 120.2 million new shares of 50 sen apiece in a new investment holding company, Nationwide Express Holdings Sdn Bhd (NewCo).

NewCo is expected to be listed on the Main Market of Bursa Malaysia Securities Bhd replacing NECSB, whose listing would be withdrawn, NECSB told Bursa Malaysia in a filing today.

For purpose of the proposed internal reorganisation, NECSB and NewCo will enter into a share exchange agreement, it said, following which NECSB would become a wholly-owned unit of NewCo.

“Under the proposed share exchange, all shareholders of NECSB as at the entitlement date will exchange their NECSB shares with new NewCo shares on the basis of two new NewCo share for every one existing NECSB share held.

“The issue price of the new NewCo shares will be determined based on the par value of the NewCo shares of 50 sen, after the proposed share split.

“As at April 27, 2016, being the latest practicable date prior to the date of this announcement, NECSB has an issued and fully paid-up share capital of RM60.1 million comprising 60.1 of NECSB shares,” it said.

The NewCo shares will rank pari passu in all respects with each other and its existing issued and paid-up shares.

“The existing NewCo shares will continue to be held by the existing shareholders of NewCo, namely directors and shareholders Izman Ismi and Harani Khalid,” it said.

The creation of a separate listed entity would enable NewCo to achieve ease and flexibility in the expansion to new business segments.

NewCo would also be able to acquire or expand to new businesses or explore investment opportunities that can be assumed separately from NECSB and other subsidiaries’ operational activities.

“Apart from that, the new corporate structure will also enable the business operations of the NECSB group to be streamlined under NewCo, after taking into consideration the different business risks and various business operations which the NECSB group is currently involved in.

“The segregation of the business divisions upon completion of the proposed internal reorganisation, will provide greater flexibility for the board of NewCo to manage its operations more effectively,” NECSB said.

Barring unforeseen circumstances, the proposed exercise is expected to be completed in the fourth quarter of calendar year 2016.

NECSB and its subsidiaries are involved in providing express courier services, trucking services, freight forwarding services, customised logistics services, mailroom management services, retail and warehousing.

The group is owned by BHR Enterprise Sdn Bhd (54.8%) and 45.2% by other shareholders. Its shares were not traded today.

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