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Nuplex - Source: Nuplex -
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Resins maker Nuplex says it will consolidate its shares, merging every four shares on its register into one.
Nuplex has been in the media over the last few months, following its capital raising efforts to pay down debt.
The company on Tuesday said it now had 759,188,912 shares on issue compared with 81.7 million shares on issue as at the end of June last year.
Nuplex says the consolidation will not affect shareholders' percentage shareholding, their potential dividend payments or the rights attached to the shares.
"This is surprising, but when you look at the process that they've undertaken recently it does make sense for the company to reduce down the number of shares following that very diluted seven for one rights issue," says market analyst Jennie Moreton.
The consolidation will take effect from June 17 2009.
The company's shares on Tuesday morning were trading down 2.2% or one cent at $0.45 per share.
So far this year Nuplex's stock has fallen around 60% compared with a 2.8% rise in the benchmark NZX50.
