MTD to make 35 sen capital repayment
Date: Tuesday, 30 January 2007
Category: Publication - The Star
KUALA LUMPUR: MTD Infraperdana Bhd has proposed a capital repayment involving cash distribution of 35 sen for every share held as part of its active capital management initiative.
In an announcement to Bursa Malaysia, MTD said that the capital repayment, which involved the reduction in the par value of its shares to 25 sen each from 60 sen, was to improve the capital structure of the company and subsidiaries as well as to enhance shareholder value.
"The board sees the group’s capital base as overly-funded by equity capital and plans to increase the debt portion of the group's capital structure," it said.
It said as at Sept 30, 2006, the group had about RM823.369mil in shareholders’ fund and borrowings of RM524.923mil.
"Such composition of debt to equity is below the industry norm," it said.
MTD would fund the capital repayment by raising borrowings at competitive rates.
- Bernama
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