General Overview

What is the Extraordinary General Meeting (EGM) about?
EGM 1 on 30 July 2025 will seek shareholder approval for four resolutions under the Proposed Regularisation Plan (PRP). If approved by shareholders, the PRP serves as the blueprint for SEB to strengthen its balance sheet, restructure its debt, raise new funds and secure a regulatory exemption.

Why is my vote important?
These resolutions are critical to SEB’s aim to exit its PN17 status, reduce RM10.8 billion of debt, clear significant past losses and restore financial health. A “NO” vote will impede SEB’s restructuring, extend its PN17 status, restrict access to fresh capital and potentially prompt creditor actions, all of which could materially diminish shareholder value.

Shareholding Impact

What happens to the number of shares I own? Will my shareholding be consolidated, and how many new shares will I get?
Your existing shares will be consolidated at a ratio of 20 existing shares into 1 new consolidated share. For example, if you held 2,000 shares before consolidation, you will now hold 100 new consolidated shares.

Will my ownership share stay the same after capital reduction, consolidation and new shares for the lenders?
The share capital reduction will not change your shareholding, its effect is confined to the balance sheet, where the reduction is used to offset accumulated losses. After the Restructuring Effective Date, the issuance of new settlement shares to unsecured creditors (including lenders) will dilute existing shareholding percentages, but the underlying economic value of your share should, in principle, remain intact.

In addition, the subsequent conversion (if any, as there is a redemption option as well) of RCUIDS and RCLS will dilute all existing shareholders equally, reducing each shareholder’s percentage in line with the new total issued shares. This may occur over the course of 8 years after Restructuring Effective Date.

Is my voting power at the EGM affected by having fewer shares?
No. Your voting power at the EGM remains unchanged because the share consolidation and issuance of any new instruments will only take effect after the EGM. You will vote based on your current shareholding, prior to any capital reduction, consolidation or new share issuance.

What does the capital reduction mean for me?
The proposed capital reduction cancels 99.99 percent of the Company’s existing share capital on paper and uses the resulting “credit” to offset accumulated losses. As a shareholder, your percentage ownership remains unchanged – you’re not giving up any of your economic interest. What changes is the accounting treatment: past losses disappear from the balance sheet, restoring equity headroom so that future profits can go directly into retained earnings rather than merely offsetting old deficits.

Will I lose any value when the Company writes off past losses?
No. This exercise does not remove cash or real economic value from your holding. It’s purely an accounting move to improve the capital structure and better reflect the Company’s fundamentals post restructuring.

If you cancel 99.99 percent of paid-up capital, am I going to lose most of my money?
Although cancelling almost all of the paid-up capital sounds drastic, it does not translate into you losing 99.99 percent of your money. The value of your investment remains the same before and after the exercise. The “cancelled” portion simply creates an accounting credit to offset past losses, not a cash withdrawal from shareholders.

Share prices

Should I expect the share price to jump and stay higher after these measures?
Unfortunately, we cannot predict how the share price will move. The steps we are taking to strengthen and de-risk the balance sheet are fundamental improvements, and we believe the market will view them positively over time.

Will the share price immediately jump by 20 times after consolidation, or could it actually be lower?
In theory, the reference price of the shares should adjust proportionately following the consolidation. However, in practice, the actual trading price may fluctuate based on market factors such as investor sentiment, supply and demand dynamics, and broader market conditions.