PETALING JAYA: Suiwah Corp Bhd’s major shareholder Suiwah Holdings Sdn Bhd intends to privatise the group by way of a selective capital reduction (SCR) and repayment exercise.
The proposed SCR entails a capital repayment which is equivalent to a cash amount of RM2.80 per ordinary share each in Suiwah held by the entitled shareholders on an entitlement date to be determined later.
The offer price represents a premium of 28.44% against its five-day volume weighted average price of RM2.18.
Suiwah founder and managing director Datuk Hwang Thean Long, the ultimate offeror for the exercise, together with the parties acting in concert, collectively hold a 30.91% stake in the group.
In a stock exchange filing, Suiwah said it has received a letter from Suiwah Holdings and parties acting in concert, requesting for the group to undertake a SCR and repayment exercise.
The exercise will be funded by internally generated funds and financing facilities.
“The privatisation of Suiwah by way of the proposed SCR would provide greater flexibility to Suiwah in managing and developing the existing businesses of Suiwah without the regulatory restrictions and cost associated with being listed on Bursa Securities,“ it said.
The offer will remain open for the board’s acceptance until Feb 11, 2019.
“The non-interested directors will deliberate on the proposed SCR and upon consultation with an independent adviser to be appointed will decide on the next course of action.”
