Friday, 26 April 2019
Kumpulan Perangsang Selangor Declares Special Dividend Of 32.6 sen
KUALA LUMPUR, April 26 (Bernama) -- Investment holding company Kumpulan Perangsang Selangor Bhd has declared a special dividend of 32.6 sen per ordinary share for the financial year ending Dec 31, 2019.
The special dividend would be payable on May 28, 2019 to shareholders registered in the Records of Depositors at the close of business on May 15, 2019, Perangsang Selangor, which focuses in the manufacturing, trading, licensing and infrastructure sectors, said in a statement today.
The aggregate amount of the payment to be made in connection with this special dividend is RM175.188 million.
Besides the special dividend, Perangsang Selangor’s board has proposed for shareholders’ approval a final annual dividend for the financial year ended Dec 31, 2018 amounting to RM22.8 million or 4.25 sen per ordinary share.
The final annual dividend, which would be payable on July 19, 2019, is entitled to shareholders registered in the Records of Depositors at the close of business on June 28, 2019.
“Returning capital to shareholders in the form of this 32.6 sen special dividend is a reflection of Perangsang Selangor’s recent results of its corporate exercise, strong financial position and our confidence in the company’s financial future.
“It is also a way of rewarding our shareholders for their continuous support to the company’s corporate exercise and strategic initiatives. Our excess capital remains at a level which will afford us the financial flexibility to grow our business and ensure a healthy balance sheet,” Perangsang Selangor managing director/ group chief executive officer Ahmad Fariz Hassan said.
Perangsang Selangor’s 30 per cent-associate Syarikat Pengeluar Air Selangor Holdings Bhd (SPLASH Holdings) accepted Pengurusan Air Selangor Sdn Bhd’s (Air Selangor) takeover offer of Syarikat Pengeluar Air Sungai Selangor Sdn Bhd (SPLASH) via the acquisition of 50,000,000 ordinary shares of RM1.00 each and 350,000,000 Redeemable Unsecured Loan Stocks in SPLASH for a total cash consideration of RM2.55 billion on Aug 9, 2018.
On April 24, 2019, SPLASH Holdings received RM1.9 billion from Air Selangor being the first tranche payment for the SPLASH divestment, of which Perangsang Selangor is entitled to RM570.0 million.
Subsequently on the very same day, Perangsang Selangor, via its wholly-owned subsidiary Viable Chip (M) Sdn Bhd which owns 30 per cent of SPLASH Holdings, received the RM570.0 million.
Ahmad Fariz said the board had considered three options as to how the proceeds from SPLASH divestment would be utilised, one of which was for distributing special dividend.
The other two probable options were for paring down borrowings and funding future business expansion.
The conclusion of Perangsang Selangor’s investment in SPLASH not only marks the resolution on the consolidation of the water industry but also allows Perangsang Selangor to sharpen its focus on the core businesses in manufacturing, trading, licensing and infrastructure sectors, ultimately growing further values for the stakeholders.
“With the completion of SPLASH divestment, we can now be fully focused in executing our Business Transformation and Value Creation Plans to unlock the full potential of our core businesses, thus on track to create long-term value and generate greater sustainable returns for Perangsang Selangor and all our shareholders,” Ahmad Fariz said.
