Tanjung Offshore proposes par value reduction, Esos

PETALING JAYA: Tanjung Offshore Bhd has proposed to undertake a par value reduction to wipe out its accumulated losses and put the group on a better financial position for any fundraising exercise in the future.
It has also proposed a new employees’ share option scheme (Esos) of up to 10% of the share capital of the company for eligible executive directors and employees.
In a filing with Bursa Malaysia yesterday, Tanjung Offshore said it would cut its par value of 50 sen by 40 sen.
It explained that the current market price of Tanjung shares have been trading below its existing par value of 50 sen on Bursa Securities, which is not conducive for Tanjung to embark on any fund raising exercise and/or corporate exercise involving new issuance of shares.
Meanwhile, the proceeds from the Esosoptions are intended to be utilised for Tanjung Group’s working capital requirements. The estimated expenses for the proposals amounts to RM230,000, which would be funded via internally generated funds.
The proposals are conditional upon approvals being obtained and are expected to be completed by the first quarter of 2017.