SCIB gets shareholder approval for debt capitalisation, LTIP

KUALA LUMPUR: Sarawak Consolidated Industries Bhd (SCIB) has got the green light from its shareholders for two proposals aimed at bolstering its financial framework and retaining talent.

In a statement, the group said the first proposal passed at an extraordinary general meeting held recently involves the capitalisation of an aggregate RM11.3mil debt owed to Goh Hardware & Construction Sdn Bhd by SCIB Properties Sdn Bhd, a subsidiary of SCIB.

Via the initiative, SCIB will issue about 18.5 million new ordinary shares at an issue price of 61.1 sen, significantly above the current market price of 31 sen.

SCIB said its shareholders also showed strong support for the proposed establishment and implementation of a Long-Term Incentive Plan (LTIP) covering up to 15% of the total number of issued shares at any point in time during the LTIP’s tenure.

It said the LTIP is designed to retain and motivate eligible directors and employees of SCIB as it navigates through a phase of rapid expansion.

“These measures, integral to our growth strategy, aim to align the interests of our employees and directors with those of our shareholders, ensuring SCIB’s continued success and resilience in the face of evolving market dynamics,” said managing director Ku Chong Hong.