Stock News: Datacraft proposed captial reduction!

Datacraft Asia Ltd may gain after proposing a capital reduction to facilitate future dividend payouts and write off accumulated losses worth 80.4 mln usd. Under the proposed exercise, Datacraft said it will cancel 80.4 mln usd from its issued and paid-up capital, reducing its issued paid-up capital to 139.8 mln usd from 220.2 mln currently. "The financial impact of this exercise will be minimal," Datacraft said. "There will be no change to the number of issued ordinary shares in the capital of the company as a result of the capital reduction exercise," it said. At the same time it said the move "will not have any effect on the earnings, net tangible assets and gearing of the company." The proposal is subject to shareholder and regulatory approvals.