The 20-year contract secured by its unit Metro Parking Management Philippines Inc would also include the construction of an additional 208-bays of steel deck parking structure in MBP - a bustling business hub in the affluent suburb near Alabang Town Centre, one of Metro Manila
KUALA LUMPUR: Kayin Holdings Sdn Bhd, the major shareholder of Selangor Properties Bhd (SPB), has proposed a capital reduction and repayment exercise in a bid to take the company private.
Under the terms of the proposal, the capital repayment will amount to RM622.27mil or RM5.70 per share, representing a 40.39% premium to the share's closing price on the latest practisable date and a 19.62% premium over the one-year volume weighted average market price (VWAP).
The entitled shareholders collectively hold 109.17 million shares or about 31.8% stake in SPB.
According to Kayin, which holds the remaining 68.2% stake, a glut in the property market is expected to limit the group's development activities over the near-to-medium term.
Meanwhile, trading liquidity of the shares has been low with an average daily trading volume of about 57,617 shares which represents only 0.05% of the free float.
Kayin said the privatisation will allow SPB greater flexibility in managing and developing its businesses and undertake corporate exercises without lengthy shareholder and regulatory approvals. It would also eliminate the costs associated with its listing on Bursa Securities.
"The proposed SCR represents an avenue for the entitled shareholders, especially those with a significant number of shares, to realise their investment," it said.
Trading in SPB's shares has been suspended for Thursday. The stock last traded at RM4.06 a share.
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