Stock News: Starhub proposed capital reduction exercise!

StarHub Ltd said it is proposing to return 2.13 sgd per share to shareholders, or a total of about 652 mln sgd, through a capital reduction exercise. It said the exercise will involve the cancellation of about 306 mln ordinary shares, or 14.3 pct of StarHub's issued share capital. "The directors of the company are of the view that the capital reduction exercise will allow the company and group to achieve a more efficient capital structure and return surplus capital to its shareholders," StarHub said in a disclosure to the Singapore Exchange. StarHub said the capital reduction will be funded by cash and possibly from drawdowns from its credit facilities. "StarHub will continue to review its capital structure in light of its cash flow trends, cash operating requirements and investment needs," StarHub president and chief executive officer Terry Clontz said in a statement. "We will make further adjustments to StarHub's capital structure when appropriate," he said. The proposed capital reduction is still subject to shareholder and regulatory approvals. "Subject to these approvals, StarHub expects that shareholders will be paid the cash distribution from the capital reduction by end-September," the statement said.