KUALA LUMPUR: Tanah Makmur Bhd will reduce the par value of its shares by 30 sen instead of the earlier-proposed 25 sen to facilitate the revised selective capital reduction’s (SCR) revised consideration price of RM1.90.
The company would then undertake a proposed bonus issue of new Tanah Makmur shares of 20 sen each to all shareholders other than Pahang Crown Prince Tengku Abdullah Sultan Ahmad Shah and certain selected persons acting in concert (PACs) with him, CIMB Investment Bank Bhd told Bursa Malaysia on behalf of the board.
Tanah Makmur board received a letter from Tengku Abdullah clarifying the terms and conditions on Wednesday.
CIMB further said that the board, save for the interested directors, had deliberated on the contents of the revised SCR offer letter received on Tuesday and the letter received on Wednesday, and had resolved to table the proposed SCR and repayment exercise to Tanah Makmur shareholders for their consideration.
The EGM for the purpose will be held on Nov 18 in Kuantan.
Tengku Abdullah, whose stake in Tanah Makmur together with PACs total 68.08%, first notified the board in April of his intention to privatise the company by way of the SCR and repayment exercise.
Tanah Makmur operates 13 plantations in Pahang measuring about 18,000ha. Property development, however, was the group’s biggest profit contributor last year and up to June this year.
Tanah Makmur shares gained 9 sen on Wednesday to close at RM1.81 with 405,700 shares changing hands.
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