Kuchai Development Berhad (KLSE:KUCHAI) announced the spin off of 26.51% stake in Sungei Bagan Rubber Company (Malaya) Berhad (KLSE:SBAGAN) for MYR 61.5 million on April 22, 2022. Kuchai Development proposes to distribute 17,584,030 ordinary shares in Sungei Bagan to the entitled shareholders of Kuchai Development by way of dividend-in specie. Distributable Shares are expected to be distributed on the basis of approximately 0.142 Sungei Bagan Shares for every one Kuchai Development Share.

Upon completion of the Proposed Dividend-In-Specie, Kuchai Development will cease to be a shareholder of Sungei Bagan. The entitlement date shall be August 18, 2022. The Proposed Dividend-In-Specie is subject to approval of the shareholders of Kuchai Development and approvals/consents of any other relevant regulatory authority and/or party, if required.

Kuchai Development Board recommends the shareholders to vote in favour of the resolution pertaining to the Proposed Dividend-In-Specie. As of August 3, 2022, shareholders of Kuchai Development approved the Proposed Dividend-In-Specie. The Proposed Dividend-In-Specie is expected to be completed by the 3rd quarter of 2022.

The Proposed Dividend-In-Specie is expected to be completed by end August 2022. The Securities Crediting Date shall be September 9, 2022. The Proposed Dividend-In-Specie is not expected to have any material effect on the earnings and EPS for the financial year ending June 30, 2022.

RHB Investment Bank acted as advisor for Kuchai Development. Boardroom Share Registrars Sdn Bhd acted as share registrar.