Farlim proposes 1-for-5 bonus issue

PETALING JAYA: Farlim Group (Malaysia) Bhd has proposed a bonus issue of 28.07 million bonus shares on the basis of one bonus share for every five existing Farlim shares.
The proposed bonus issue is to reward the existing shareholders of the company for their continued support to Farlim and its subsidiaries.
In addition, it said the exercise will allow the company to utilise the amount standing to the credit of its share premium account as provided for under Section 618(3) of the Act, following the implementation of the no par value regime.
Farlim noted that there will be a corresponding dilution in the earnings per share of the Farlim group for the financial year ending Dec 31 as a result of the increase in the number of Farlim shares in issue arising from the exercise.
The exercise is expected to be completed by the third quarter of 2018.