Zelan plans to sell its 56.6m IJM Corp shares (Jupiter)

Zelan Bhd has proposed to sell all its 56.6m shares of IJM Corp Bhd, representing a 4.05% stake. On the assumption that the IJM shares are sold at RM5.74 per share, the sale would raise gross proceeds of up to RM325.2m - result in a one-time gain on disposal of about RM79.0m. Meanwhile, announced a reduction of 40sen of the par value of each share of 50 sen each in Zelan via the reduction of the share premium account by approximately RM124.3m and the credit arising will be utilised to partially offset the accumulated losses of Zelan. It proposes a renounceable rights issue of 281.6m new Zelan shares together with 281.6m new free detachable warrants. The rights issue would be on the basis of one rights share for every two “new” Zelan shares. Star