KUALA LUMPUR (Sept 2): Sunway Bhd declared a special cash dividend of 26 sen to reward shareholders.

Sunway said the special cash dividend arose from the proceeds raised from the offer for sale of 398.71 million Sunway Construction Group Bhd (SunCon) shares offered by Sun Holdings, in conjunction with the listing on July 28 this year, after setting aside for listing expenses and working capital.

SunHoldings is a wholly-owned subsidiary of Sunway.

In a filing with Bursa Malaysia, Sunway said the entitlement date for the special dividend is on Oct 2, 2015 and is payable on Oct 16 this year, for financial year ending Dec 31, 2015.

According to the filing, Sunway said it had mentioned the special cash dividend in Sunway's circular to shareholders dated April 3, in relation to the listing of Sunway Construction Group Bhd (SunCon) on the Main Market of Bursa Malaysia Securities Bhd.  

"Unless otherwise stated, the terms used herein has the same meaning as those defined in Sunway's circular to shareholders," it added.  

In a separate filing, Sunway said the exercise price of the warrants 2011/2016 will be adjusted for the special cash dividend, in accordance to the deed poll dated June 28, 2011.  

Based on the special cash dividend of 26 sen, the diversified group said the five-day weighted average market price (5-WAMP) of its shares, including Sept 1, 2015 (the entitlement date) of RM3.37, the exercise price of the warrants shall be adjusted to RM2.25, from RM2.43.  

It said the adjustment to the exercise price is expected to take effect on Oct 3, being the next day, following the entitlement date.

Sunway (fundamental: 1.5; valuation: 2.4)'s share price dropped one sen to RM3.38 today, bringing its market capitalisation to RM5.96 billion.

(Note: The Edge Research's fundamental score reflects a company’s profitability and balance sheet strength, calculated based on historical numbers. The valuation score determines if a stock is attractively valued or not, also based on historical numbers. A score of 3 suggests strong fundamentals and attractive valuations.)