Eng - IOI Group

Directors’ Report cont’dSignificant Events During the Financial Year cont’dviii. Special issue of 1,800,000 new ordinary shares of the CompanyOn 15 August 2006, the Company announced that it proposed to undertake a special issue of 1,800,000 new ordinary sharesof RM0.50 each in the Company to Bumiputera investors at an issue price to be determined later (“Special Issue”). The SpecialIssue was undertaken to comply with one of the conditions imposed by the Equity Compliance Unit of the Securities Commission inapproving the proposed issuance of new ordinary shares by the Company following the exchange of the 1 st Exchangeable Bonds.The said condition requires the Company to increase its Bumiputera equity by 0.14% (equivalent to 1,800,000 ordinary sharesof RM0.50 each) of its enlarged issued and paid-up share capital after the full exchange of the 1 st Exchangeable Bonds within 2years of the implementation of the said 1 st Exchangeable Bonds.On 10 January 2007, the Securities Commission had granted the Company an extension of time until 17 July 2007 for theimplementation of the said Special Issue. Subsequently, 9,000,000 new ordinary shares of RM0.10 each in the Company wereallotted and issued for cash at an issue price of RM4.976 per share on 8 June 2007. The number of the shares issued and the issueprice were adjusted pursuant to the Share Split exercise of the Company.ix.Proposed capital repaymentOn 30 March 2007, the Company announced its proposed capital repayment to its shareholders to be implemented via acancellation of ordinary shares of RM0.10 each in the Company on the basis of one ordinary share cancelled (“Cancelled Share”)for every twenty existing ordinary shares held at an entitlement date to be determined later, with the remaining balance being thedifference between the cash distributed and par value for each Cancelled Share to be set-off against the share premium accountof the Company pursuant to Sections 64 and 60(2) of the Companies Act, 1965 (“Capital Repayment”).The Capital Repayment was completed on 22 August 2007 with a cash distribution of RM1,314,391,432 for 312,950,341ordinary shares of RM0.10 each cancelled, on the basis of RM4.20 for each Cancelled Share.117ANNUAL REPORT 2007IOI Corporation Berhad