CCT Fortis (HKG:0138) said its board proposed a capital reorganization, according to a Hong Kong bourse filing Friday.

Shares of the car distributor fell nearly 10% in late morning trade Monday.

Under the plan, the company will consolidate its shares on the basis of one share for every 10 shares in issue. The move will reduce the company's existing 1.60 billion shares to 160 million shares.

CCT Fortis will also reduce the paid-up capital of issued shares to HK$1 each from HK$0.10 apiece. The move will result in a credit of HK$144 million, which will be transferred to the company's surplus account.

The proposal is subject to shareholder approval.