by BERNAMA / pic credit: ANNUAL REPORT

MALAYAN United Industries Bhd (MUI) has proposed to undertake a capital reduction exercise via the cancellation of paid-up share capital, which is substantially unrepresented by available assets of RM3.07 billion.

MUI — which owns brands such as Laura Ashley and Metrojaya — said the RM3.07 billion arising from such cancellation would be used to set off against the accumulated losses of the company, while the remaining balance would be credited to its retained earnings.

In a filing to Bursa Malaysia yesterday, it said that as at March 1, 2022, the issued share capital of MUI was RM3.15 billion comprising 2.93 billion ordinary shares.

“The proposed capital reduction will enable the company to eliminate its accumulated losses to reflect more accurately its financial position. It will also enhance the company’s ability to declare and pay dividends out of its retained earnings in the future, as and when appropriate when the company returns to profitability.

“The proposed capital reduction would also enhance the MUI group’s credibility with its customers, financiers, suppliers and investors,” it said.

The MUI group — which is involved in retailing, hotel, property, food and financial services — narrowed its loss before tax to RM90.2 million for the financial year ended June 30, 2021, from RM184.3 million in the preceding financial year.