PRESS Metal Aluminium Holdings Bhd, Southeast Asia’s largest aluminium smelter, has proposed a bonus issue of 4.04 billion new shares on the basis of one bonus shares for every one existing share held on an entitlement date to be determined and announced later.
The proposed bonus issue is in line with the Press Metal’s objective to reward its shareholders for their loyalty and continuous support.
This exercise will allow shareholders to have greater participation in the equity of the group in terms of the number of shares while retaining their percentage of equity interest held.
“It will also result in the shares being more affordable to appeal to a wider group of shareholders and investors, potentially improving the liquidity and marketability of the shares,” Press Metal pointed out in a media statement.
“The proposed bonus issue is subject to the approvals of relevant authorities and the shareholders of Press Metal at a general meeting to be held on a later date.”
With creating value for shareholders being one of Press Metal’s priorities, the proposed bonus issue is an alternative avenue for the company to reward its shareholders apart from cash dividends, according to the company’s group CEO Tan Sri Paul Koon Poh Keong.
“We are looking forward towards a new phase of growth in 2021 as our Phase 3 smelter commenced production in late December 2020,” envisaged Koon.
“We anticipate operating at full capacity come the second half of 2021which will increase our smelting capacity increased by 42% to 1.08 million tonnes per annum and thereby cementing our leading position as the largest aluminium smelter in Southeast Asia.”
Additionally, Press Metal expects positive contribution from its investment in PT Bintan Alumina Indonesia once Phase 1 of the refinery is completed by the second quarter of 2021.
“Press Metal has grown from a modest aluminium extruder to a globally integrated aluminium corporation and we will continue to strive towards greater achievements and stronger performance moving forward,” added Koon.
At 2.40pm, Press Metal was up 30 sen or 3.11% to RM9.94 with 2.2 million shares traded, thus valuing the company at RM40.14 bil. – March 10, 2021
