“In addition, the company would be in a better position to retain profits and enhance its ability to declare dividends, where appropriate, if the accumulated losses are written off,” he adds.
Rex International plans to undergo a capital reduction exercise to reduce accumulated losses. Specifically, the company plans to cancel some US$168.1 million in capital, but without reducing the share base.
“This serves to rationalise the balance sheet of the company to reflect more accurately the value of its underlying assets, and thus the financial position of the company,” says executive chairman Dan Broström on Nov 23.
