Next-Generation Satellite Communications (NGSC) is proposing a selective capital reduction move to return $7.36 million in cash to shareholders, or 0.155 cent per share for a total of 4.749 billion shares.
As at July 12, NGSC has a total issued and paid-up share capital of $145.6 million comprising 6.425 billion shares in issue and 24.2 million treasury shares; it has only one class of shares in issue.
The reduction will see the company reducing its total number of issue shares by 73.91%, from $145.6 million comprising 6.425 billion shares to $138.3 million comprising 1.676 billion shares.
The idea of the selective capital reduction was first floated in May, where the shares held by NGSC’s shareholders would be cancelled in return for cash, subject to shareholders’ approval.
Only the shares of Telemedia Pacific Group and Hady Hartanto, NGSC’s controlling shareholders, and their associates, which represent a total of 26.09% of the total of the company’s shares, will remain in NGSC.
The selective capital reduction presents a chance for the company’s shareholders to fully exit their investment.
This comes following the suspension of the trading of NGSC’s shares on Jan 3, 2020, which has made it difficult for the company’s shareholders to exit their positions.
See also: Singapore's change to delisting rule will lead to higher prices, say analysts
NGSC, on Dec 3, 2019, was notified by the SGX-ST that the company is to be delisted after not having met the requirements of the rules under the listing manual.
Previously, NGSC revealed that it had reached out to its controlling shareholders to make an exit offer, which the latter revealed that it was in no position to do so.
On June 11, MC Payment was said to be in talks with NGSC in relation to a potential acquisition of 51% of the company, but the talks concluded without any outcome.
As at July 12, the controlling shareholders of NGSC hold 1.676 billion shares, or 26.09% of the total number of NGSC’s issued shares.
The selective capital reduction will be funded from NGSC’s existing cash reserves. It is expected to be completed by Nov 30.
Shares in NGSC last traded at 0.1 cent before its trading suspension.
Photo: Stock photo
