Thakral Corporation says it plans to reduce its capital by distributing $130.6 million (or 5 cents per share) to its shareholders in cash as it has not paid them dividends since financial year ended March 31 2005.

The level of cash distribution should still allow the group to maintain sufficient cash reserves and assets to support the group’s current business and take advantage of new business opportunities that may arise in future, the company says.

“The board has previously not reached a consensus on the strategy and business direction for the use or investment of the company’s surplus cash reserves. In the circumstances, the Board has unanimously resolved that the surplus capital in the company be returned to shareholders by way of the capital reduction and cash distribution,” says Thakral in an SGX press release.