SINGAPORE - Koh Brothers Eco Engineering, formerly known as Metax Engineering and taken over by Koh Brothers two years ago, intends to undertake a capital reduction exercise, it said yesterday.

It will reduce and cancel the share capital of the company which is unrepresented by available assets.

This entails the reduction of its issued and fully paid up share capital from about $30 million to about $16.5 million.

The credit of about $13.5 million from the cancellation of share capital will be used to write off the accumulated losses of the company as at Dec 31.

As there will be no changes to the number of issued shares of the company following the exercise, it will not have any effect on net tangible assets per share, earnings per share, the return on equity and the gearing ratio of the company and group, it said.