The Proposed Bonus Issue and Proposed Share Split will be implemented simultaneously with the bonus shares to be allotted and issued in the form of subdivided shares.
Deleum Group Managing Director Nan Yusri Nan Rahimy said, “Subject to the relevant approvals, our Proposed Bonus Issue is aimed at rewarding our shareholders for their loyalty and continued support in addition to our second interim dividend payment of 11.0 sen per ordinary share, which was recently declared in respect of our financial year ended 31 December 2013. This exercise will also enable them to have a greater participation in the equity of the Company in terms of number of shares held, whilst maintaining their percentage of equity interest.”
“In addition, the Proposed Share Split is expected to enhance the marketability and trading liquidity of Deleum’s shares as a result of the increase in the number of shares in issue. This Proposed Share Split exercise will also result in an adjustment to the market price of Deleum’s shares to a more affordable entry price which is expected to appeal to a wider group of public shareholders and/or investors,” added Nan Yusri.
Nan Yusri also revealed that Deleum has proposed the establishment of a Long Term Incentive Plan of up to 10% of the issued and paid-up share capital of the Company for the Executive Directors of Deleum and the key employees of Deleum Group (“Proposed LTIP”). The duration of the Proposed LTIP shall be in force for a period of ten (10) years commencing from the effective date of the implementation of the Proposed LTIP.
The Proposed LTIP offers a restricted share incentive plan and a performance share Incentive plan where selected employees are granted fully-paid new and/or existing ordinary shares in Deleum on a vesting date, subject to such selected employees’ fulfillment of certain vesting conditions, performance targets and/or other conditions as may be determined from time to time by the Plan Committee.
“The Proposed LTIP is a stock incentive scheme to retain, motivate and reward selected employees who have contributed and/or will contribute to the growth of the Deleum Group. It is a means for us to reward selected employees based on their work performance, hence aligning their performance and interests to drive longer term shareholders’ value enhancement.”
“We believe that the Proposed LTIP is also a flexible and effective scheme in retaining the key employees of the Group whose contributions are vital to our operations, long-term growth and profitability besides attracting potential employees via a competitive compensation package,” explained Nan Yusri.
As announced on the 25 February 2014, Deleum posted a 12.0% increase in pre-tax profit, from RM67.5 million (FY2012) to RM75.6 million. This was achieved on the back of revenue of RM484.7 million, which is a 2.4% increase from fiscal year 2012.