KUALA LUMPUR (April 13): CCK Consolidated Holdings Bhd proposed to raise its authorised share capital to RM500 million comprising one billion shares from RM100 million or 200 million shares of 50 sen each.

In order to reward shareholders, CCK Consolidated also proposed a bonus issue of 157.67 million shares to be credited as fully paid-up on the basis of one bonus share for every one existing share held in CCK Consolidated on an entitlement date to be determined later.

In a filing with Bursa Malaysia today, CCK Consolidated said the increase in share capital was to accommodate any corporate proposals involving issuance of shares in future including a proposed bonus issue.

Based on its latest audited consolidated financial statements for the financial year ended Dec 31, 2014 (after adjusting for completed events) and latest quarterly report for the 12-month financial period ended Dec 31, 2015, CCK Consolidated said the share premium and retained earnings account of group are adequate to be capitalised for the entire bonus issue of securities.

The proposed bonus issue is expected to be completed in the third quarter of 2016 and will have a dilutive impact on the earnings per share of the group for the financial year ending Dec 31, 2016 as a result of an increase in the number of shares in issue upon the bonus issue completion, it added.

"Barring any unforeseen circumstances and subject to all required approvals being obtained, the proposals are expected to be completed by the third quarter of 2016," it said.

CCK Consolidated shares closed three sen or 2.63% lower at RM1.11 for a market capitalisation of RM176.9 million.