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Koh Bros Group proposes dividend in specie of shares in Koh Bros Eco Engineering
KOH Brothers Group is proposing a dividend in specie to its shareholders of up to about 41.47 million shares in Koh Brothers Eco Engineering (KB Eco).
The proposed distribution is in proportion to shareholders' respective shareholdings in Koh Brothers Group on the basis of 0.1 KB Eco share for each ordinary share held. As such, those holding 1,000 Koh Brothers Group shares as at the books closure date will receive 100 KB Eco shares.
Koh Brothers Group will appropriate around S$1.916 million out of the group's retained profits to meet the dividend to be declared.
As at Aug 11, the group held around 524.15 million KB Eco shares, or 70.1 per cent of the total number of issued KB Eco shares. Following the proposed distribution, the group will own 64.6 per cent of KB Eco.
The group said that the exercise will unlock shareholder value as well as deliver investment flexibility for shareholders. In addition, it will enhance the trading liquidity of KB Eco as the public float will rise, they highlighted. No payment will be required from shareholders for the shares.
The proposed distribution will require the green light from shareholders at an extraordinary general meeting - which will be called - as well as the necessary regulatory approvals.