Tatung Co., a Taiwanese home appliance manufacturer, unveiled plans to reduce its capital by NT$1.17 billion ($37 million) through a cash distribution to shareholders, marking its latest attempt to enhance investor returns.
The Taipei-based company will cancel about 117 million shares, or 5% of its outstanding stock, according to a statement Tuesday. Shareholders will receive NT$0.5 per share in cash.
The proposed capital reduction will lower Tatung’s outstanding shares to 2.22 billion from 2.34 billion. The company’s paid-in capital will decrease to NT$22.23 billion after the completion of the program.
The plan requires shareholder approval at an upcoming meeting. The exact reduction ratio and timeline will be determined based on the total shares outstanding on the record date, Tatung said. Shareholders with fractional shares after the reduction can combine them into whole shares within five days before the stock transfer closure period.
The company’s board authorized the chairman to handle any adjustments needed due to changes in share capital or regulatory requirements before the capital reduction date.
