Wen family further ups offer price to take Selangor Properties private

KUALA LUMPUR: Selangor Properties Bhd’s major shareholder Kayin Holdings Sdn Bhd has again revised its proposed selective capital reduction and repayment offer price to RM6.30 from RM6 for each share to privatise the company.

This is the second revision after the Wen family, who owned Kayin, had upped the price to RM6 from RM5.70 previously.

Consequent to the revision of the offer price, CIMB Investment Bank Bhd said the entitled shareholders would receive a total capital repayment of RM687.77 million. This represents a cash repayment of RM6.30 for each Selangor Properties’ shares held by the shareholders on the entitlement date.

“The issued share capital of Selangor Properties will be reduced by up to RM687.77 million pursuant to the proposed corporate exercise,” the investment bank said on behalf of Selangor Properties today.

To facilitate the implementation of the selective capital reduction, CIMB said a bonus issue was proposed to be undertaken by Selangor Properties.

“In view that the issued share capital to be reduced is higher than the existing issued share capital of Selangor Properties of RM545.37 million, Selangor Properties will undertake a bonus issue of up to 382,093,338 bonus shares by way of capitalising up to RM382,093,338 from the retained earnings of the company,” it said.

It was reported that the proposed selective capital reduction was expected to be funded by the company’s internally generated funds and bank facilities obtained by the company.

The Wen family holds a 68.23 per cent stake in Selangor Properties.

The company’s shares grew 5.57 per cent to RM6.07 on Tuesday from Monday’s close.

Source: NST