Del Monte Pacific Limited slams proposed bonus share issue

For good reason, and here’s why.

The Board of Directors of Del Monte Pacific Limited said:

On 8 August 2012, the Company announced the Proposed Bonus Share Issue which was subject to the in-principle approval of the Singapore Exchange Securities Trading Limited.

On 10 August 2012, an amendment to Rule 838 of the SGX-ST Listing Manual became effective requiring listed companies to ensure that the daily weighted average share price, adjusted for a bonus share issue is not less than S$0.50.

Prior to 10 August 2012, daily weighted average share price, adjusted for a bonus share issue was to be not less than S$0.20 with which the Company was able to comply.

As at 8 August 2012, the Company’s daily weighted average share price was S$0.4525 (before adjusting for the Proposed Bonus Share Issue).

Under the new amendment of Rule 838, the Company is unable to meet the requirement and will therefore not be able to proceed with the Proposed Bonus Share Issue announced on 8 August 2012.

The Directors wish to assure shareholders that the Board will continue to evaluate other options to increase the liquidity of the Company’s shares in the market and to reward shareholders for their continuing support. These options would include a bonus share issue when the Company is able to comply with the requirements of Rule 838.