PRG Holdings Berhad Annual Report 2018

18. SHARE CAPITAL AND TREASURY SHARES Group and Company 2018 2017 Number Number of shares of shares (’000) RM’000 (’000) RM’000 Ordinary shares Issued and fully paid: Balance as at 1 January 302,488 77,730 298,220 74,555 Issued for cash pursuant to exercise of warrants 3,457 1,434 4,268 1,771 Issued for acquisition of a joint venture 4,806 4,125 - - Transfer from share premium account pursuant to the Companies Act 2016 - - - 1,404 Balance as at 31 December 310,751 83,289 302,488 77,730 (a) During the financial year, the issued and paid-up share capital of the Company was increased from 302,488,174 to 310,751,274 by way of the issuance of 3,457,100 new ordinary shares pursuant to the exercise of Warrants 2014/2019 at an exercise price of RM0.375 per ordinary share for cash and issuance of 4,806,000 new ordinary shares as Consideration Shares for acquisition of 55% of the enlarged share capital of PRGA. (b) The owners of the parent are entitled to receive dividends as and when declared by the Company and are entitled to one (1) vote per ordinary share at meetings of the Company. All ordinary shares rank pari passu with regard to the Company’s residual assets. (c) Of the total 310,751,274 (2017: 302,488,174) issued and fully paid ordinary shares as at 31 December 2018, 417,800 (2017: 417,800) ordinary shares bought for RM87,000 (2017: RM87,000) are held as treasury shares by the Company. The number of outstanding ordinary shares in issue after deducting the treasury shares is 310,333,474 (2017: 302,070,374) ordinary shares as at 31 December 2018. (d) With the introduction of the Companies Act 2016 effective 31 January 2017, the concepts of authorised share capital and par value of share capital have been abolished. Consequently, the balance within the share premium account of RM1,404,000 has been transferred to the share capital account pursuant to the transitional provisions set out in Section 618(2) of the Companies Act 2016. Notwithstanding this provision, the Company may utilise its share premium account for purposes stipulated in Section 618(3) of the Companies Act 2016 for a transitional period of 24 months from 31 January 2017. There is no impact on the number of ordinary shares in issue or the relative entitlement of any of the member as a result of this transition. (e) Warrants 2014/2019 (“Warrants”) On 7 July 2014, the Company issued 54,320,100 free detachable Warrants pursuant to the Rights Issue with Warrants Exercise on the basis of one (1) Warrant for every one (1) Rights Share subscribed. The Warrants are constituted by the Deed Poll dated 2 June 2014 (“Deed Poll”). The salient features of the Warrants are as follows: (i) Each Warrant entitles the registered holder, at any time during the Exercise Period, to subscribe for one (1) new ordinary share of the Company at the exercise price; (ii) The exercise price for the Warrants was fixed at RM0.75 per Warrant (adjusted to RM0.375 pursuant to the share split in the financial year ended 31 December 2016); 2018 A N N U A L R E P O R T 136 notes to the financial statements 31 December 2018 (continued)