L&G ... Jun 09

Land & General Bhd, which had more than half a billion ringgit in accumulated losses, has proposed a five-into-one share capital reduction.
The proposed par value reduction would involve cancelling 80 sen of the par value of the shares of RM1 each. The reduction of 80 sen from each existing L&G Share will give rise to a credit of approximately up to RM536.01 million which will be utilised to eliminate the company’s accumulated losses as at March 31, 2009.

The exercise included the 71.710 million redeemable convertible secured loan stocks A and B (RCSLS) issued by L&G which may be converted into 71.710 million new L&G shares of RM1 each. The RCSLS were issued on July 30, 2003 and would mature between five and seven years from the date of issue.

Assuming that 71.710 million RCSLS were converted into 71.710 million new L&G shares of RM1 each prior to the proposed par value reduction, the company’s paid-up would increase to 670 million shares from the existing RM598.3 million of 598.3 million RM1 shares.

In this event, the proposed par value reduction will involve the reduction of the issued and paid-up ordinary share capital of L&G from up to RM670.01 million comprising 670.01 million L&G shares of RM1 each down to RM134.003 million comprising 670.01 million L&G shares of 20 sen each, by cancelling 80 sen of the par value of each existing L&G share in issue.