News
Article in the STAR 31 March 2005 entitled "Bursa M'sia to return cash pile to shareholders"
BackMar 31, 2005
| General Announcement Reference No BM-050331-64825 |
| Company Name | : | BURSA MALAYSIA BERHAD |
| Stock Name | : | BURSA |
| Date Announced | : | 31/03/2005 |
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| Type | : | Announcement |
| Subject | : | Article in the STAR 31 March 2005 entitled "Bursa M'sia to return cash pile to shareholders" |
Contents :
We refer to the above article in the Star and statements made therein, which were also reported in the other newspapers and international wires.
The article in the Star had stated that "newly-listed Bursa Malaysia Bhd is looking to return some of its RM860mil cash pile to shareholders?"
We wish to clarify the above statement as follows:-
(1) As stated in Bursa Malaysia's Prospectus dated 23 February 2005, Bursa Malaysia ("Bursa") will actively seek to optimise its capital structure and maximise returns to shareholders through dividend payments and other capital management initiatives, whilst ensuring that its minimum prudential requirements, future capital expenditure requirements and on-going business needs are met.
(2) Bursa presently does not have any proposal to return surplus cash to shareholders. The decision to return surplus cash to shareholders will have to be made by the Board of Directors of Bursa ("Board") and to-date, no such proposal has been made to the Board.
(3) However, Bursa does have a dividend policy as stated in the Prospectus of not less than 75% of the company's Profit After Tax of each year, the payout of which shall be determined by the board or recommended by the board to the shareholders, as the case may be. The level of dividend payments will take into account the level of cash, marketable financial assets and level of indebtedness, required and expected interest expense, cash flows, profits and return on equity and retained earnings, expected results of operations, projected levels of capital expenditure and other investment plans, and the level of franking credits or exempt account available to distribute dividends in a tax efficient manner.