braemar plc said tuesday it will propose a capital reduction process to shareholders and that this was intended to increase its distributable reserves and capacity to pay future dividends and provide enough distributable reserves to cover all historic dividends paid the londonlisted maritimeservices group said it has a share premium account and a merger reserve account and that as both of these are nondistributable reserves it was unable to use them to make distributions to shareholders among other things the company said it has an amount standing to the credit of the share premium account of 537 million pounds 652 million and gbp234 million in its merger reserve account the board said it intends to seek shareholder approval to reduce the amount standing to the credit of its share premium it also aims to capitalize and reduce the merger reserve by approximately gbp75 million so as to create distributable reserves to increase its capacity and flexibility to pay future dividends the company also said it has continued to perform well since publishing its interim results in november and that the integration of recentlyacquired spanish and us businesses has progressed well it added both businesses are set to make an immediate and strong contribution to the groups trading in the next financial year