DAIRY Farm International Holdings is planning to make a cash offer to odd-lot shareholders, in a move that was first undertaken by its parent, Jardine Matheson Holdings.
Director Tim Westinghouse said odd lots represented 0.06 per cent of the group's issued share capital, yet 30 per cent of the group's shareholders are holders of odd lots.
If all individuals holding odd lots came forward, the total cost of the exercise would be US$1.8 million.
Odd lots are shareholdings of fewer than 1,000 ordinary shares.
Although these lots trade at a discount, the company is offering to take them back at a five per cent premium to the market, with the price based on the 10 business days before and including April 15, the date the offer closes.
The company said the premium would take into account that shareholders accepting the offer would not be entitled to a final dividend.