KUALA LUMPUR: Tanah Makmur Bhd said its board, excluding the interested directors, has decided to table the selective capital reduction (SCR) proposed by Pahang Crown Prince Tengku Abdullah Al-Haj Sultan Ahmad Shah to its shareholders for their consideration.
The plan entails a repayment of RM1.80 per share to entilted shareholders and a delisting of the oil palm plantation firm from Bursa Malaysia. The counter has jumped 20 sen since the proposal was announced on Monday, closing at RM1.67 on Thursday.
In making his proposal, Tengku Abdullah noted he and parties acting in concert with him - including biggest shareholder Pahang State Agricultural Development Corp (20% stake) - held 69.9% of the company’s issued and paid-up capital as at April 22.
Under the proposed SCR, Tanah Makmur will reduce the par value of its shares from 50 sen to 25 sen, thus creating additional share premium reserve. A bonus issue is also proposed, as the number of Tanak Makmur shares to be cancelled is higher than the existing issued and paid-up capital.
On completion of the proposed SCR, all Tanah Makmur shares held by the entitled shareholders would be cancelled and they would receive RM1.80 per share, or a total repayment of RM285.13mil.
Al the remaining shares not cancelled will continue to be held by the non-entitled shareholders, including Tengku Abdullah and the Pahang State Agricultural Development Corp.
Tanah Makmur, however, did not give any tentative EGM date to consider the proposals.
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