Lysaght aborts proposed bonus issue, free warrants

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KUALA LUMPUR (Oct 17): Lysaght Galvanized Steel Bhd has decided to abort the proposed share split, bonus issue, and free warrants issue after its major shareholder said it wouldn’t support the deal.

“The board of directors of Lysaght wishes to announce that the board had on Oct 17, 2014, deliberated and resolved to abort the proposals after taking into consideration that Lysaght (M) Sdn Bhd (LMSB), a major shareholder holding approximately 55% interest in Lysaght, has indicated that they are not in favour of the proposals,” said Lysaght in a filing to Bursa Malaysia this evening.

The company’s shares surged from RM3.20 in early May to hit as high as RM6.20 in July, before surrendering the gains to fall back to close at RM3.14 today, with a market capitalisation of RM130.6 million.

The proposals entailed a subdivision of every one existing ordinary share of RM1.00 each in Lysaght into two new ordinary shares of 50 sen each; a bonus issue of 41.58 million new shares on the basis of one bonus share for every two subdivided shares held after the proposed subdivision; and the issue of 62.37 million free warrants on the basis of three free warrants for every four subdivided shares.

LMSB and Ingli Sdn Bhd (with a 15.46% stake in Lysaght) are both controlled by the same founding family of Lysaght.

Lysaght’s managing director is Liew Hoi Foo, who is the son-in-law of Lysaght’s founder, the late Chew Kar Heing and Lim Lee Kuan; the latter is still a director. Through LMSB and Ingli, the Chew family and Liew collectively owns more than 70% of Lysaght.