Logistics services firm proposes bonus issues
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Logistics services firm proposes bonus issues

By In News On February 15, 2016

KUCHING: Bintulu-based Harbour-Link Group Bhd is to reward its shareholders with bonus shares and bonus warrants on completion of a share split.

The company’s proposed share split involves the sub-division of every one ordinary share of RM1 into two new ordinary shares of 50 sen each.

After the share split, the company proposes a bonus issue of up to 36.4 million subdivided shares on the basis of one bonus share for every 10 subdividied shares held by entitled shareholders.

Also proposed is a bonus issue of up to 36.4 million warrants on the basis of one warrant for every 10 subdivided shares.

Harbour-Link will convene an extraordinary general meeting (EGM) on March 7 to seek shareholders’ nod to the proposals.

The company said the proposed bonus issue of shares would be capitalised from its retained earnings which amounted to about RM21.2mil (unaudited) as at Sept 30, 2015.

“The proposed bonus issue of shares aims to reward the existing shareholders of the company for their loyalty and continuing support by enabling them to have a greater participation in the equity of the company in terms of shares held while maintaining their percentage of equity interest,” it added in a filing with Bursa Malaysia.

In addition, Harbour-Link said the proposed share split and bonus shares was expected to improve the company’s trading liquidity.

The indicative exercise price of the warrants is RM1.65 each. The company expects the various proposals to be completed by second quarter of 2016.

Harbour-Link shares closed at RM2.77 on Thursday (Feb 11),giving the company a market capitalisation of RM504mil.In the financial year ended June 30,2015,Harbour-Link posted a group net profit of RM55.2mil on revenue of RM538mil.In the current year first quarter (July-Sept),the company posted group net profit of RM10.7mil on revenue of RM115.2mil.

Harbour-Link business is divided into five key segments – integrated logistics services; shipping & marine services; engineering & construction works; heavy lifting & heavy haulage services as well as property development.

Commenting on the prospects for the current financial year, Habour-Link expects domestic and regional shipping business to remain competitive.

“The logistics services & equipment rental and engineering divisions are expected to continue contribute positively to the group,” it said, adding that the company would continue to develop its land bank in Bintulu in phases.

Harbour-Link has completed the first two phases (mixed development of commercial shophouses and semi-deatched industrial buildings) of its ambitious Kidurong Gateway project, which covers some 40ha. The plan is to develop the entire land bank into a township. The land is located near to the Kidurong oil and gas hub and Bintulu Port, and has easy reach of the Samalaju Industrial Park, which caters to energy-intensive industries under Sarawak Corridor of Renewable Energy initiative.


News link at: http://www.thestar.com.my/metro/community/2016/02/15/logistics-services-firm-proposes-bonus-issues/

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