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GHL Systems Berhad
(293040-D)
Annual report 2015
8. Effects of Proposed Shares Buy-Back
Assuming that the Company buys back up to 64,909,129 GHL Shares representing 10% of its issued and paid-
up share capital as at 31 March 2016 and such shares purchased are cancelled or alternatively be retained
as treasury shares or both, the financial effects of the Proposed Share Buy-Back on the share capital of the
Company, Net Assets, working capital, earnings and dividends of GHL are as follows:
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 31 March 2016 to be reduced from RM129,818,258
comprising 649,091,291 GHL Shares to RM116,836,432 comprising 584,182,162 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 2015
649,847,192 129,969,438
Issued and paid up share capital as at 31 March 2016
649,091,291 129,818,258
After share purchase and cancellation
584,182,162 # 116,836,432
Notes:
# Assuming up to 10% of the issued and paid up capital of GHL or 64,909,129 GHL Shares are
purchased and cancelled.
8.2 Net Assets
The Proposed Share Buy-Back, if implemented may increase or decrease the net assets and net assets
per Share depending on the purchase prices of GHL Shares pursuant to the Proposed Share Buy-
Back. The consolidated net assets per Share will increase if the purchase price is less than the audited
consolidated net assets 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 of Shareholders
in relation to the Proposed Renewal of Authority for the Company to
Purchase its own Ordinary Shares (continued)