Annual report 2014
169
8. Effects of Proposed Shares Buy-Back (Cont’d)
8.1 Share Capital
In the event that all GHL shares purchased are cancelled, the Proposed Share Buy-Back will result in
the issued and paid up share capital of GHL as at 15 April 2015 to be reduced from RM128,834,058.40
comprising 644,170,292 GHL Shares to RM115,950,652.60 comprising 579,753,263 GHL Shares. It is not
expected to have any effect on the issued and paid up capital if all GHL Shares purchased are to be
retained as treasury shares.
The effect of the Proposed Shares Buy-Back on the issued and paid up share capital of GHL are
illustrated below:
No of Shares
RM
Issued and paid up share capital as per audited account
as at 31 December 2014
641,589,492 128,317,898
Issued and paid up share capital as at 15 April 2014
644,170,292 128,834,058
After share purchase and cancellation
579,753,263 # 115,950,652
Notes:
# Assuming up to 10% of the issued and paid up capital of GHL or 64,417,029 GHL Shares are
purchased and cancelled.
8.2 Net Assets
The Proposed Share Buy-Back, if implemented may increase or decrease the NA and NA per Share
depending on the purchase prices of GHL Shares pursuant to the Proposed Share Buy-Back. The
consolidated NA per Share will increase if the purchase price is less than the audited consolidated NA
per Share and conversely, the consolidated Net Assets per share will decrease if the purchase price
exceeds the consolidated Net Assets per Share at the time when the GHL Shares are purchased.
In theevent thepurchasedGHL Shares which are retainedas treasury shares are resold, theconsolidated
Net Assets per Share of GHL will increase or decrease depending on whether a gain or a loss is realised
upon the resale. The quantum of the increase or decrease in Net Assets will depend on the actual
selling price and the number of the treasury shares resold to the market.
8.3 Working Capital
The Proposed Share Buy-Back, as and when implemented, will reduce the working capital of the GHL
Group, the quantum of which will depend on the actual purchase price and number of purchased
GHL Shares as well as any associated costs incurred in relation to the share buy-back pursuant to
the Proposed Share Buy-Back. However, it is not expected to have a material adverse effect on the
working capital of the Company.
The working capital and the cash flow of the Company will also increase accordingly when the
Proposed Share Buy-Back which are retained as treasury shares are resold. The quantum of the increase
in working capital and cash flow will depend on the actual selling price and the number of the treasury
shares resold to the market.
STATEMENT TO SHAREHOLDERS
in relation to the Proposed Renewal of Authority for the Company to Purchase its
own Ordinary Shares
