STOCKS | China Aerospace Technology Proposes Capital Reorganisation

China Aerospace Technology Holdings (00232) said it plans a capital reorganisation that would reduce the par value of each issued share from HK$0.10 to HK$0.005 by cancelling HK$0.095 of share capital per share, according to ETNet. After the par value reduction, the company plans to increase its authorised share capital to HK$50 million, divided into 10 billion new shares. It also proposed to cancel the entire balance in its share premium account and transfer all credits arising from the capital reduction and share premium reduction to its contributed surplus account. The company said it wants to create additional credits in the contributed surplus account because its current distributable reserves are insufficient to fully fund a special dividend from a disposal.