MTQ Corporation Limited

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Proposed Scrip Dividend Scheme

BackOct 31, 2003

The Directors of MTQ Corporation Limited ("Company") wish to announce that the Company proposes to implement a scrip dividend scheme ("Scheme"), subject to shareholders' approval.

The proposed Scheme will provide shareholders with an opportunity to elect to receive dividends in the form of new ordinary shares of S$0.25 each in the Company ("New Shares") credited as fully paid, instead of cash, subject to the terms and conditions of the Scheme to be approved by the shareholders. The Scheme will enable shareholders to further participate in the equity capital of the Company without having to incur transaction or other related costs. The Company will also benefit from the participation by shareholders in the Scheme as, to the extent that shareholders elect to receive dividends in the form of New Shares, the cash which would otherwise be payable by way of dividend will be retained for the Company's use to fund the continuing growth and expansion of the Company. Additionally, the retention of cash and the issue of New Shares under the Scheme will enlarge the Company's share capital base and strengthen its working capital.

In connection with the Scheme, the Company will be submitting an additional listing application to the Singapore Exchange Securities Trading Limited ("SGX-ST") for the admission to the Official List of the SGX-ST of the New Shares issued pursuant to the Scheme.

Details of the Scheme will be set out in a circular to be despatched to shareholders at a later date. The Company will convene an extraordinary general meeting at a later time and place to be announced to seek shareholders' approval for the Scheme.

By Order of the Board
MTQ Corporation Limited