Yi-Lai proposes 2-for-3 bonus shares issue; changes name to YB Ventures

YI-LAI Bhd is rewarding its shareholders with a two-for-three bonus issue proposal that entails the issuance of 97.05 million new shares on an entitlement date to be determined later.

As of Jan 20, the issued share capital of the tiles manufacturer-cum-information technology company stood at RM93.69 mil comprising 145.57 million shares (including 484,900 treasury shares).

Upon completion of the corporate exercise, Yi-Lai’s share capital will increase to 242.62 million shares.

For illustrative purpose, a company filing with Bursa Malaysia today shows that based on the five-day volume-weighted average market price of Yi-Lai shares up to and including the latest practicable date prior to the announcement of 95.68 sen, the theoretical ex-bonus price is 57.41 sen.

Apart from the bonus issue, Yi-Lai has also proposed to change to “YB Ventures Bhd”.

“This rebranding exercise represents a significant step forward in our company’s transformation to achieve its full potential as a diversified holding company,” Yi-Lai’s executive director Au Yee Boon pointed out.

“This is in line with its objective of assisting its operating subsidiaries in their growth, maturation and operating performance as well as to pursue strategic opportunities that will contribute positively to shareholders’ value.”

Barring any unforeseen circumstances, the bonus issue exercise is expected for completion by 2Q 2021 while the proposed name change – if approved by the shareholders – will take effect from the date of the registration of change of name to be issued by the Companies Commission of Malaysia (CCM) to the company.

Moving forward, Au is confident of Yi-Lai maintaining its earnings momentum following the company’s continuous effort in cost optimisation coupled with the increased momentum in sales during 4Q 2020.

This was also evident by the turnaround shown in its 3Q FY2020 with a net profit of RM7.0 mil from a net loss of RM1.0 mil a year earlier.

Moreover, Yi-Lai had on October 2020 diversified into the business of blockchain technology solutions and system integration services.

“We are currently exploring a few more business collaborations and potentially a merger & acquisition (M&A) opportunity,” noted Au.

“The COVID-19 pandemic presents us with a good opportunity to explore such business opportunities given our strong financial position to expand our growth.”

At 3.41pm, Yi-Li was up 1 sen or 0.93% at RM1.09 with 9.22 million shares traded, thus valuing the company at RM173 mil. – Feb 10, 2021

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