Upon completion of the proposed capital reduction and repayment, Litrak will submit an application to Bursa Securities for its proposed delisting.
Therefore, the group is distributing its assets back to its shareholders as it also intends to voluntarily wind-up the company.
“Litrak shareholders will then hold unlisted Litrak shares until the completion of the winding-up process and be entitled to a further cash distribution from the remaining available cash arising from the winding-up process,” the group said.
In a Bursa Securities filing yesterday, Litrak said the cash distribution may range from 50.2 sen to 50.91 sen, depending on Litrak’s share base on the entitlement date.
This takes into consideration 7.66 million outstanding ESOS (employee share option scheme) options which have exercise prices ranging from 35 sen to 44 sen per piece, Litrak said in its filing.
Litrak said it has total cash reserves of about RM235.64 million, as of the latest practicable date (LPD) on March 23.
Of this amount about RM214.6 million is placed in the custodian account representing approximately 91% of the company’s total cash reserves.
As for the LPD, the issued share capital of Litrak is RM285 million comprising 541.62 million ordinary shares, which the group said is sufficient for the capital reduction.
The proposals are subject to shareholders’ approval, which Litrak expects to be completed by the end of the third quarter of the 2023 financial year.
The group was classified as a cash company after it disposed of its 100% stake in Lingkaran Trans Kota Sdn Bhd for RM2.326 billion cash and its 50% interest in Sistem Penyuraian Trafik KL Barat Sdn Bhd (Sprint) to Amanat Lebuhraya Rakyat Bhd (ALR).
It received a further RM57.94 million from ALR yesterday as compensation for the government’s move to impose a lower toll rate than the one stipulated in Litrak’s concession agreement.
Following that, Litrak said the balance disposal proceeds yet to be received relates only to ALR’s warranty claims as announced on Tuesday.
“Pending the resolution of the remaining ALR warranty claims, ALR has retained the balance retention sum of RM8.41 million,” Litrak said.
At midday, Litrak’s share price stood at 50 sen, up 2% or 1 sen, giving the company a market capitalisation of RM270.81 million.