KUALA LUMPUR (July 9): Eurospan Holdings Bhd (KL:EUROSP), controlled by the children of businessman Tan Sri Robert Tan Hua Choon, has declared a special dividend of 20 sen per share for the financial year ending May 31, 2025 (FY2025).
The special dividend will be paid on Aug 5, with an ex-date of July 24 and an entitlement date of July 25, its bourse filing on Wednesday showed.
This is the first dividend Eurospan has declared in 14 years. It last declared a dividend of 40 sen per share in FY2011.
The small-cap wood furniture maker reported lacklustre earnings over the past two financial years, with a net loss of RM6.13 million for FY2023 and RM4.61 million for FY2022. However, the group managed to achieve a net profit of RM1.18 million for the first nine months of FY2024 (9MFY2024), contrasting with a RM3.9 million net loss recorded in 9MFY2023, largely due to property disposals.
“The global market remains uncertain with the ongoing Russia-Ukraine War and the rising global inflation rate and interest rate. The group foresees a more challenging business environment for FY2024. However, the group will continue its effort in mitigating the impact on its operating results,” Eurospan commented on its prospects in its financial statement for the third quarter ended Feb 29, 2024.
In May, Datuk Seri Tan Han Chuan and his sister Datin Tan Ching Ching, children of Hua Choon, triggered an unconditional mandatory general offer (MGO) in the company after increasing their combined stakes in Eurospan to 71.8%.
The siblings initially had a total of 18.91% stakes in Eurospan with Han Chuan holding 14.22% and Ching Ching at 4.69%.
Subsequently, Han Chuan acquired 23.5 million shares for close to RM40 million (RM1.70 per share) through a direct business deal which raised his stake to 67.14%. This triggered the unconditional MGO and resulted in the total shareholdings of 71.8%.
Following the conclusion of the MGO on July 5, the siblings’ combined stakes have further increased to 73.99%, equivalent to 32.87 million shares.
With 32.87 million shares on hand, the Tan siblings would stand to get RM6.57 million through the special dividend.
At Wednesday’s closing bell, Eurospan's share price was five sen or 2.86% higher at RM1.80, giving the group a market capitalisation of RM79.96 million. It has gained over 24% year-to-date.