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Global Testing proposes dividend of S$0.10 per share, capital reduction exercise

THE board of directors of Global Testing Corporation is proposing a dividend of S$0.10 per share.

It is also proposing a round of capital reduction and cash distribution, both at S$0.10 per share.

"The directors are of the view that the capital reduction is in the best interests of the company as the cash distribution comprises the issued and paid-up capital in excess of the immediate requirements of the company," the board wrote in a filing to the Singapore Exchange on Friday.

Global Testing offers testing services for the semiconductor manufacturing industry.

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An extraordinary general meeting (EGM) will be convened to seek shareholders' approval for the dividend, and the capital reduction and cash distribution exercises.

The board has proposed a dividend of S$0.10 per ordinary share for the financial period ended March 31, 2016.

As for the capital reduction exercise, it is looking to reduce the issued and paid-up share capital of the company by S$3,535,802.70, or S$0.10 per share, to S$50,189,033.91. The number of issued shares is unchanged, said the company.

Net asset value (NAV) will thus be reduced from US$50,570 to US$47,939, resulting in a fall in NAV per share from US$1.43 to US$1.36. Return on equity will increase from 7.83 per cent to 8.26 per cent.

In turn, a cash distribution amount of S$3,535,802.70, or S$0.10 per ordinary share held as at the books closure date, has been proposed.

The distribution comprises the issued and paid-up capital in excess of the immediate requirements of the company, said the board.

Global Testing's counter was down 2.5 Singapore cents to close Friday at 92.5 Singapore cents.

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