KUALA LUMPUR (Nov 10): C.I. HOLDINGS BHD [] is increasing the cash distribution to shareholders to RM724.2 million or RM5.10 per share from the initial plan to distribute at least RM568 million or RM4 per share.

It said on Thursday the increase in the cash distribution would be implemented via the declaration of a special dividend payment and a proposed capital repayment via a reduction of the issued and paid-up share capital.

On July 21, the CIH had entered into a conditional share sale agreement with Asahi Group Holdings, Ltd. to dispose of its entire equity interest in Permanis Sdn Bhd'' to Asahi for a total cash consideration of RM820 million. Following the disposal, CIH said it would undertake a cash distribution.

On Thursday, CIH proposed to declare a special cash dividend payment of RM653.2 million on the basis of RM4.60 for each CIH Share held.

The proposed capital repayment of RM71 million to the shareholders on the basis of 50 sen for each share held via a reduction of the issued and paid-up share capital.'' The par value of CIH share will be reduced from RM1 to 50 sen per share. The total number of shares in issue will remain unchanged at 142 million ordinary shares.

'The special dividend shall be paid out of the cash proceeds to be received by the company from the disposal. The board believes that this is an opportune time for CIH to reward its shareholders for their continuous support and investment in the company.

'The special dividend is not subject to any approval from shareholders or regulators and is expected to be paid to entitled shareholders by the end of 2011,' it said.