Green Packet to undertake capital reduction to remove RM455m losses

PETALING JAYA: Green Packet Bhd proposes to undertake a capital reduction exercise to eliminate the entire accumulated losses via the cancellation of its issued share capital, in line with the group's turnaround plan.
The group said in a bourse filing that the capital reduction exercise is to reduce its issued share capital by an amount equivalent to the entire accumulated losses of RM455.51 million as at December 31, 2017.
The proposed capital reduction will allow Green Packet to rationalise its financial position and to enable it to pay dividends out of its retained earnings in the future when it returns to profitability.
In addition, the group will also implement a share grant scheme of up to 15% of its total number of issued shares to reward and retain the
executive directors and employees.
Green Packet's share price gained 1.35% to close at 37.5 sen with 732,100 shares done.