Annual Report 2012 - IOI Group

Issue of Shares and DebenturesDuring the financial year, the Company issued:i. 7,486,900 new ordinary shares of RM0.10 each for cash at RM2.44 per ordinary share arising from the exercise of options grantedunder the Company’s Executive Share Option Scheme; andii.3,731,900 new ordinary shares of RM0.10 each for cash at RM4.19 per ordinary share arising from the exercise of options grantedunder the Company’s Executive Share Option Scheme.The newly issued ordinary shares rank pari passu in all respects with the existing issued ordinary shares of the Company.There was no issue of debentures by the Company during the financial year.Treasury SharesThe shareholders of the Company, by a special resolution passed at an extraordinary general meeting held on 18 November 1999,approved the Company’s plan to repurchase up to 10% of the issued and paid-up share capital of the Company (“Share Buy Back”). Theauthority granted by the shareholders was subsequently renewed during subsequent Annual General Meetings of the Company,including the last meeting held on 24 October 2011.The Directors of the Company are committed to enhancing the value of the Company to its shareholders and believe that the Share BuyBack can be applied in the best interests of the Company and its shareholders.During the financial year, the Company repurchased 28,941,100 ordinary shares of RM0.10 each of its issued shares from the openmarket. The average price paid for the ordinary shares repurchased was RM4.82 per ordinary share. The repurchase transactions werefinanced by internally generated funds. The ordinary shares repurchased were held as treasury shares and treated in accordance withthe requirement of Section 67A of the Companies Act, 1965.The Company has the right to cancel, resell these shares and/or distribute these shares as dividends at a later date. As treasury shares,the rights attached to voting, dividends and participation in other distribution is suspended. None of the treasury shares repurchasedhad been sold as at 30 June 2012.At the end of the financial year, the number of ordinary shares in issue after deducting treasury shares is 6,398,310,195 ordinary sharesof RM0.10 each.USD370 Million Zero Coupon Guaranteed Exchangeable Bonds due 2011(“2 nd Exchangeable Bonds”)On 18 December 2006, the Company’s wholly-owned subsidiary, IOI Capital (L) Berhad (“IOI Capital”), a company incorporated in theFederal Territory of Labuan under the Offshore Companies Act, 1990, issued USD370 million Zero Coupon Guaranteed ExchangeableBonds due 2011 (“2 nd Exchangeable Bonds”). The 2 nd Exchangeable Bonds were issued at 100% of the principal amount and listed on theSingapore Exchange Securities Trading Limited and the Labuan International Financial Exchange and matured on 18 December 2011.The 2 nd Exchangeable Bonds were unconditionally and irrevocably guaranteed by the Company.The salient features of the 2 nd Exchangeable Bonds are disclosed in Note 34.2 to the financial statements.IOI Capital had on the maturity date of the 2 nd Exchangeable Bonds, 18 December 2011, redeemed and settled in full the outstandingBonds of USD63,975,000 (equivalent to RM203,784,215) at their accreted principal amount of 116.05%, which amounted to USD74,245,598(equivalent to RM236,499,896). Following from the redemption, the Bonds ceased to be quoted on the Singapore Exchange SecuritiesTrading Limited and the Labuan International Financial Exchange.Annual Report 2012IOI CORPORATION BERHAD 103