GHL System Berhad Annual Report 2018

G H L S y s t e m S B e r h a d ( 2 9 3 0 4 0 - D ) 162 8. Effects of Proposed Share Buy-Back (cont'd) 8.1 Share Capital (cont'd) The effect of the Proposed Share 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 at 31 December 2018 738,014,933 314,375,960 Issued and paid up share capital as at 29 March 2018 738,014,933 314,375,960 After share purchase and cancellation 664,213,440 # 282,938,364 Notes: # Assuming up to 10% of the issued and paid up capital of GHL or 73,801,493 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 the event the purchased GHL Shares which are retained as treasury shares are resold, the consolidated 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. 8.4 Earnings The effect of the Proposed Share Buy-Back on the EPS of GHL will depend on, inter-alia, the actual number of purchased GHL Shares and the effective cost of funding to the GHL Group, or any loss in interest income to GHL or opportunity cost in relation to other investment opportunity. However, the Proposed Share Buy-Back, if exercised, is not expected to have any material effect on the EPS of GHL for the financial year ending 31 December 2018. 8.5 Dividends The above Proposed Share Buy-Back is not expected to have any impact on the dividend payment as the Board will take into considerations the Company’s profit, cash flow and the capital commitments before proposing any dividend payment. STAT EMENT TO SHAREHOLDERS I N R E L A T I O N T O T H E P R O P O S E D R E N E W A L O F A U T H O R I T Y F O R T H E C O M P A N Y T O P U R C H A S E I T S O W N O R D I N A R Y S H A R E S C O N T ’ D