Tuesday, March 8, 2011

Mudajaya proposes a 1-for-3 bonus issue

After many days of watching Mudajaya going south, it finally announce a news that many investors would cheer of.  Mudajaya is proposing a 1-for-3 bonus issue.

To avoid any confusion, it means if you are holding 3000 units of Mudajaya, you are entitled to 1000 units of new Mudajaya share, which will ends up with a total of 4000 units.   The announcement is just a proposal, meaning it has to get approval from its shareholders before we can have an idea of when the bonus issue is scheduled.

If the proposal is approved and you are only holding 2000 units of Mudajaya, you will end up with odd lots.  In this case, you have a decision to make, either to sell off your share or to top-up so it can be in multiply of 300 or 3000 units.  When more details is released, I will post it here.

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