Pansar proposes one-for-two bonus issue

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KUALA LUMPUR (Feb 20): Pansar Bhd today proposed a one-for-two bonus issue of up to 231 million new shares.

The marine and industrial engineering product distributor said the bonus issue will be undertaken via the enhanced bonus issue framework (no par value regime).

"Pursuant to the enhanced bonus issue framework, the bonus  shares will be issued as fully paid shares at nil consideration  and without capitalisation from the company’s reserves.  

"Accordingly, the proposed bonus issue of shares will increase  the number of Pansar shares but will not increase the value of Pansar’s issued share capital," the group said in a filing with Bursa Malaysia.

Pansar currently has an issued share capital of RM151.96 million, comprising 308 million shares of which 2.68 million are held as treasury shares.

Pansar also has 154 million warrants exerciseable into one Pansar share at 95 sen each. The warrants will mature in 2023.

“The proposed bonus issue of shares will give rise to the adjustments to the exercise price and number of outstanding warrants pursuant to the provisions of the deed poll constituting the warrants dated May 21, 2018,” the group said, adding that it will issue a notice to the holders of the warrants describing the mechanism of the adjustments at a later date.

Shares of Pansar rose half a sen or 0.58% to 86.5 sen today, giving the group a market capitalisation of RM266.42 million.