KUALA LUMPUR (Dec 23): My EG Services Bhd plans to distribute its entire 25.8% equity interest in Agmo Holdings Bhd by way of dividend-in-specie to its shareholders.

In a filing with the local bourse, MyEG said the stake, comprising 84 million shares, is currently held via its wholly-owned MY EG Capital Sdn Bhd. On completion of the distribution, based on an entitlement date that is yet to be fixed, MYEG Capital will cease to be a major shareholder of Agmo.

The proposed dividend-in-specie is to reward shareholders by allowing them to hold shares directly in Agmo, instead of through the group, said MyEG.

“Shareholders will also be able to benefit directly from the future financial performance and distributions to be declared (if any) by Agmo,” said MyEG.

MyEG’s carrying amount of the investment in Agmo shares is RM72.7 million. Based on the group's financial statement for the nine months ended Sept 30 2022, it recognised an investment gain of RM61.9 million following the listing of Agmo on the ACE Market of Bursa Securities in August.

The proposed dividend-in-specie will be done in two tranches. The first tranche, involving 69.7 million shares, will be distributed once the voluntary moratorium on the sale, transfer or assignment of the shares — which MyEG undertook prior to Agmo's listing, in compliance with listing requirements — is uplifted on Feb 17, 2023.

The remaining 14.2 million Agmo shares, which are subject to the moratorium for another six months till Aug 17, 2023, will be distributed once the moratorium ends.

The first tranche will be distributed on the basis of 0.0093 Agmo share for every one MyEG share held.

The second tranche will be distributed on the basis of 0.0019 Agmo share for every one MyEG share held.

MyEG shares closed unchanged at 87 sen on Friday, giving the company a market capitalisation of RM6.51 billion.