Mobilia Holdings Berhad Proposes Share Buy-Back Renewal: What Investors Need to Know

Key Highlights from the Statement to Shareholders

• Proposal: Mobilia Holdings Berhad seeks shareholder approval for the renewal of authority to buy back up to 10% of its issued ordinary shares. This proposal will be tabled as Special Business at the Sixth Annual General Meeting (AGM) scheduled for 21 May 2026.
• Buy-Back Capacity: As of the latest practicable date (LPD, 19 March 2026), Mobilia has an issued share capital of 692,420,992 shares (excluding 7,579,000 treasury shares). The maximum buy-back, if fully exercised, would amount to 69,242,099 shares.
• Funding Source: The buy-back will be funded wholly from the company’s retained profits, which stood at RM1,870,902 as at 31 December 2025, up from RM842,700 in 2024 and RM493,711 in 2023.
• Price Limits: The buy-back price cannot be more than 15% above the weighted average market price for the preceding five market days. Resale of treasury shares must be at or not more than a 5% discount to the weighted average market price, and not less than the cost of purchase.
• Treatment of Purchased Shares: Shares bought can be cancelled or retained as treasury shares. Treasury shares can be distributed as share dividends or resold on Bursa Malaysia.
• Past Buy-Back Activities: In the past 12 months, Mobilia purchased numerous shares at prices ranging from RM0.085 to RM0.141, with no resales, transfers, or cancellations of treasury shares. As at the LPD, 7,579,000 shares were held as treasury shares.

Potential Impact and Price-Sensitive Considerations

• EPS and Share Value: A buy-back reduces the number of shares in circulation, which could boost Earnings Per Share (EPS) and potentially the share price, assuming profits remain constant or improve.
• Net Assets (NA): The effect on NA per share depends on the buy-back price relative to NA per share. Buying above NA per share reduces NA; buying below increases NA. Resale of treasury shares at a profit would improve NA.
• Working Capital: Mobilia’s cash and working capital will be reduced by the amount used for the share buy-back. However, if treasury shares are later resold at higher prices, this could replenish capital and provide gains.
• Dividend Policy: The Board expects no material impact on dividend policy, but may distribute future dividends in the form of treasury shares.
• Shareholdings and Control: The buy-back will proportionally increase the effective stake of major shareholders and directors. For example, Exelient Sdn. Bhd.’s shareholding could rise from 68.74% to 76.38% if the buy-back is fully implemented.
• Public Spread Risk: The buy-back could reduce the public shareholding spread below the required 25% (to 21.79% if fully executed), which would breach Bursa Malaysia’s Listing Requirements. The Board has stated it will not proceed with buy-backs that would result in non-compliance.
• Takeover Code: The company does not intend to trigger a mandatory offer under the Malaysian Code on Take-Overs and Mergers but notes that if such an obligation arises, the affected party will seek a waiver.

Important Information for Shareholders

• Shareholder Action: The proposal will be voted on at the AGM on 21 May 2026. Shareholders can attend in person or appoint a proxy (proxy forms must be lodged by 19 May 2026, 11:00am).
• Directors’ Recommendation: The Board recommends voting in favour of the proposal, believing it to be in the company’s and shareholders’ best interests.
• Transparency and Disclosure: If treasury shares are resold, full details (number, price, consideration, etc.) will be announced on Bursa Malaysia.

Share Price Data

• The share price has trended downward over the past year, from a high of RM0.140 to a recent low of RM0.085 as at March and April 2026. The buy-back authority, if exercised, could provide support to the share price or signal management’s confidence in the company’s value.

Risks and Disadvantages

• Reduced financial resources may mean fewer funds for investments or dividends.
• If shares are bought back at prices above intrinsic value, it could erode shareholder value.
• Public shareholding spread must be carefully monitored to avoid a trading suspension risk.

Conclusion

The proposed renewal of the share buy-back authority by Mobilia Holdings Berhad is a significant corporate action that may have material effects on the company’s share price, capital structure, and shareholder value. Shareholders should carefully consider the rationale, financial effects, and potential risks before voting at the upcoming AGM.

Disclaimer: This article is for informational purposes only and does not constitute investment advice. Investors should review the official company documents and seek independent professional advice before making any investment decisions.

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