KUALA LUMPUR (April 6): Lingkaran Trans Kota Holdings Bhd (Litrak) has proposed to undertake a capital reduction and repayment involving a cash distribution of RM275.78 million on a pro-rata basis to entitled shareholders on a date to be determined later.

The cash distribution may range from 50.2 sen to 50.91 sen, depending on Litrak’s share base on the entitlement date. This takes into consideration 7.66 million outstanding ESOS options which have exercise prices ranging from 35 sen to 44 sen apiece, Litrak said in its filing.

As at latest practicable date (LPD) on March 28, Litrak said it has total cash reserves of about RM235.64 million, of which about RM214.6 million is placed in the custodian account representing approximately 91% of the company’s total cash reserves.

As at the LPD, the issued share capital of Litrak is RM285 million comprising 541.62 million ordinary shares, which the group said is sufficient for the capital reduction.

Upon completion of the proposed capital reduction and repayment, Litrak will submit an application to Bursa Securities for its proposed delisting.

The proposals are subject to shareholders' approval. It expects the proposals to be completed by end-3Q2023.

The group has been classified as a cash company after it disposed of its 100% stake in Lingkaran Trans Kota Sdn Bhd for RM2.326 billion cash and its 50% interest in Sistem Penyuraian Trafik KL Barat Sdn Bhd (Sprint) to Amanat Lebuhraya Rakyat Bhd (ALR).

Earlier, Litrak announced that it has no intention to maintain its listing status on the Main Market of Bursa Securities. Therefore, the group is distributing its assets back to its shareholders.

Upon completion of the proposed delisting, Litrak intends to voluntarily wind-up the company.

“Litrak shareholders will then hold unlisted Litrak shares until the completion of the winding-up process and be entitled to a further cash distribution from the remaining available cash arising from the winding-up process,” the group said.

The group had received a further RM57.94 million from ALR that represented the balance of the government compensation receivable pursuant to the share sale purchase agreement.

The compensation is a result of the government imposing a toll for any class of vehicle which is lower than the agreed toll rate as stipulated in Litrak’s concession agreements, the group said.

With that, the balance disposal proceeds yet to be received relates only to ALR’s warranty claims announced on Tuesday (April 4), Litrak said.

“Pending the resolution of the remaining ALR warranty claims, ALR has retained the balance retention sum of RM8.41 million,” Litrak said.

The share price of Litrak closed unchanged at 49 sen on Thursday, valuing the group at RM265.39 million.