Malaysian mobile operator DiGi has announced that its board has approved a 1-for-10 stock split, which will result in a ten-fold increase in the number of its shares to 7.775bn.
In a statement, DiGi also said that its subsidiary, DiGi Telecommunications…
Malaysian mobile operator DiGi has announced that its board has approved a 1-for-10 stock split, which will result in a ten-fold increase in the number of its shares to 7.775bn.
In a statement, DiGi also said that its subsidiary, DiGi Telecommunications (DiGiTel) is proposing to make a “capital management initiative”, which will see it issue redeemable preference shares to DiGi itself.
Upon redemption, these shares shall result in a cash payment of MYR509m (US$170m) to DiGi.Com.
DiGi CEO Henrik Clausen said that the proposed share split would keep the trading range of DiGi shares better aligned with its peers, as well as making the shares more accessible and affordable to a wider range of investors.
DiGi said on Wednesday prior to the share split announcement that it would be suspending trading on Thursday. Trading resumed Friday, and DiGi shares closed today on the Malaysian stock exchange at MYR32 (US$10.70) per share.
According to DiGi’s proposal to the stock exchange, the stock split still has three hurdles to pass before it can be implemented. It needs to be approved by the Malaysian stock exchange, DiGi shareholders (at a future meeting) and “any other relevant authorities/parties, if required”.
The company said yesterday that barring any unforeseen circumstances, it would make the submission to the relevant authorities within one month.
It expects the deal to be closed in Q4 2011.
