Press Releases




DiGi announces share split and capital management initiatives
Rewarding shareholders across-the-board

SHAH ALAM, 8 SEPTEMBER 2011: In a move to improve the trading liquidity of its shares in the market, DiGi.Com Berhad (DiGi.Com) announced today that its Board of Directors has approved a 1-for-10 share split, which will result in a proportional increase in the number of DiGi shares in circulation from the current 777.5 million shares to 7.775 billion shares.

Concurrently, DiGi.Com also announced that its wholly-owned subsidiary, DiGi Telecommunications Sdn Bhd (DiGiTel) is proposing to undertake a capital management initiative whereby DiGiTel will undertake a capital distribution of approximately RM509 million to DiGi.Com.

The proposed capital distribution entails the issuance of redeemable preference shares from DiGiTel to DiGi.Com which upon redemption will result in a cash payment of approximately RM509 million to DiGi.Com.

DiGi.Com intends to distribute the excess proceeds from the capital distribution to all its shareholders by first half of 2012.

Henrik Clausen, Chief Executive Officer explained, "Today's announcements mark another important milestone in the Company's capital management roadmap. The proposed share split would keep the trading range of DiGi shares better aligned with our peers. It would also make DiGi shares more affordable and accessible to a wider reach of investors."

"These initiatives also reflects the Board's and Management's continuing confidence in the Company's business fundamentals and ability to deliver solid earnings and cash-flow going forward", added Clausen.

 


Issued by:
Corporate Communications Department.