Cuscapi Proposes RM190 Mln Capital Reduction, 15 Pct Share Scheme

KUALA LUMPUR, Oct 30 (Bernama) -- Cuscapi Bhd has proposed a share capital reduction (SCR) of up to RM190 million pursuant to Section 117 of the Companies Act 2016.

It has also proposed the establishment of a share issuance scheme (SIS) involving up to 15 per cent of its total issued shares, excluding treasury shares, for eligible persons.

As at the latest practicable date, Cuscapi had an issued share capital of RM203.37 million, comprising 944.88 million shares.

In a Bursa Malaysia filing today, it said the proposed SCR will enable the company to rationalise its financial position by reducing accumulated losses so that its financial position more appropriately reflects the value of its underlying assets.

“In addition, the reduction of accumulated losses is expected to enhance the credibility of both the company and the group with their bankers, customers, suppliers, investors and other stakeholders.

“With lower accumulated losses resulting from the proposed SCR, this would allow the company to, among others, obtain better financing terms, credit terms and/or any other business terms and opportunities from its bankers, suppliers and other stakeholders,” it said.

Cuscapi said it also intends to utilise the proceeds arising from the exercise of the SIS options for working capital, including operating expenses, general and administrative expenses and project deployment expenses.

It said the proceeds to be utilised for each component of working capital are subject to the operating requirements at the time of utilisation and the timeframe for full utilisation cannot be determined at this juncture.

-- BERNAMA