More than 70% warrants cannot extend their exercise period

Kuala Lumpur, 20 September 2001

More than 70 per cent of the warrants listed on Kuala Lumpur Stock Exchange (KLSE) cannot extend their exercise period. Out of 167 warrants that are currently listed on the exchange, 119 cannot extend their exercise period.

Only 48 warrants can extend their exercise period, if the issuers of these warrants so wish and they fulfill the requirements stipulated by the Securities Commission (SC).

This is based on the analysis by the SC on the status of all the warrants that are listed on KLSE following the recent announcements made by issuers of listed warrants whose Deed Polls contain express provisions for extension of the exercise period of their warrants.

Details of these warrants are available here.

The 119 warrants cannot be extended due to one or more of the following factors:-

  • The exercise period of the warrants has already been fixed at the maximum allowable tenure of 10 years under section 68(1) of the Companies Act 1965;
  • The Deed Polls governing the warrants do not contain an express provision allowing for such extension; and
  • The listed company issuing the warrants has announced that it will not further extend its warrant exercise period.

On the other hand, the 48 warrants can have their exercise period extended as the Deed Polls governing the warrants have express extension provisions and they have not exhausted the maximum allowable tenure of 10 years.

The extension is, however, not automatic as certain requirements and procedures, as stipulated by the SC in its press statement of 30 October 1998, would need to be adhered to. In any event, the issuers of these 48 warrants may decide not to extend the exercise period of their warrants although the Deed Polls contain the express provisions allowing them to do so.

Thus, the SC wishes to advise investors to give careful consideration and assess the fair valuations of listed warrants when deciding on whether or not to trade in a particular warrant or to exercise their warrants. Investors would not be entitled to any recourse or compensation should they suffer losses as a result of investing in these warrants.


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