KUALA LUMPUR: Ekovest Bhd’s shareholders can expect a cash dividend of 25 sen a share upon completion of the company’s 40 per cent stake disposal in Duke Highway to the Employees Provident Fund (EPF) for RM1.13 billion.
In a circular to shareholders today, Ekovest said it plans to utilise between 18.9 per cent and 21.6 per cent of the gross proceeds from the deal as distribution to the shareholders.
This will involve a payout of between RM213.86 million and RM244.41 million, the company said.
The purpose of the proposed distribution is to reward shareholders of the company for their support of the company and investment in Ekovest, the company added.
Ekovest has proposed to sell 40 per cent stake in Konsortium Lebuhraya Utara-Timur (KL) Sdn Bhd (Kesturi) — the concession holder of the Duta-Ulu Kelang Expressway (Duke) — to EPF for RM1.13 billion. The company will retain a 60 per cent stake in Kesturi.
The bulk of the proceeds — 35.4 per cent of RM400 million — will be used to repay borrowings. Another 28.8 to 31.5 per cent will be used for general corporate and working capital.
Ekovest said the stake sale is in line with its strategy to monetise its matured infrastructure assets, and to help allocate more funds for its infrastructure division expansion and other core business such as construction and property division.
Ekovest has also proposed a share split involving the subdivision of every two existing shares of RM0.50 each into five shares of RM0.20 each.
This will result in an enlarged issued and paid-up share capital of Ekovest of a maximum of RM488.827 million comprising a maximum of 2.44 billion subdivided shares.
“The proposed share split is expected to enhance the marketability and trading liquidity of the ordinary shares of the company on the Main Market of Bursa Securities as a result of the increase in the number of ordinary shares in issue,” Ekovest said.
The extraordinary general meeting for shareholders’ approval will be held at the Grand Season Hotel Kuala Lumpur on 19 January 2017.