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SINGAPORE: The Edge Singapore reports that Seatrium has received in-principle approval from the Singapore Exchange Securities Trading Limited (SGX-ST) for its proposed share consolidation.

In a recent announcement on Feb 26, Seatrium laid out its plan to consolidate its shares, a move to reshape its share structure.

The proposal entails consolidating every 20 existing issued shares into one ordinary share, a transformation aimed at streamlining the company’s equity base.

For shareholders, if you hold less than 20 existing shares as of the record date, you won’t be in line for any consolidated shares post-consolidation. This means that you’ll no longer hold a stake in the company upon completing the consolidation.

There’s still a window of opportunity if you find yourself among the affected shareholders. You might want to consider increasing your share count before the record date, which is yet to be announced.

You could potentially secure a stronger position in the revamped share structure by purchasing additional shares.

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Seatrium’s statement states, “Shareholders who are in any doubt as to the course of action they should take should consult their stockbroker, bank manager, solicitor, accountant or other professional advisers.”

As of Feb 26, Seatrium boasted an issued and paid-up share capital of S$8.58 billion, spread across 68.2 billion shares on the market.

However, post-consolidation, this landscape is set to change dramatically. Seatrium’s shares will undergo a significant reduction, down to a much leaner 3.4 billion.

But hold your horses. The proposed share consolidation is contingent upon the green light from Seatrium’s shareholders at its upcoming annual general meeting (AGM). Until then, it’s a waiting game for investors. /TISG

Read also: Seatrium reports S$1.7B net loss for H2, leading to S$1.9B net loss for FY23