k1 Ventures proposes cash distribution to shareholders to reduce capital

SINGAPORE - Mainboard-listed k1 Ventures Limited is proposing to return capital to its shareholders as it shifts its focus to managing current assets.

The investment holding company, formerly named Keppel Marine Industries Limited, is proposing to distribute 1.5 cents in cash for each share held at a date to be determined. This would amount to a total payout of around $32.48 million. The company had an issued share capital of approximately $196.44 million when it made the announcement.

The capital reduction would be funded from existing cash and cash equivalents, and would not result in any changes to the number of shares held by shareholders. Its objective is to distribute excess cash to shareholders.

Moving forward, the company "will not be making any new investments, but will focus on managing the current portfolio of assets, with the view to monetise when appropriate and distribute surplus cash".

k1 Ventures has also proposed to consolidate every five existing ordinary shares into one ordinary share following the capital reduction, with fractional entitlements to be disregarded.

The share consolidation is to help the company meet the mainboard's requirement of listed shares maintaining a trading price of at least 20 cents per share.

k1 shares were trading at 19.7 cents as at 12.36pm on Monday (Aug 17).