Tanah Makmur shareholders approve proposed SCR

The cost of the project is RM392mil as the basis of the tender and commitment has been agreed by the Pahang state government.

KUALA LUMPUR: Non-interested shareholders of Tanah Makmur Bhd have approved unanimously for the company’s proposed selective capital reduction (SCR) and repayment exercise at an EGM on Friday.

In a filing with Bursa Malaysia, Tanah Makmur said the 84 of its non-interested shareholders, who holds 47.07 million shares, have voted for the proposed SCR and repayment exercise.

It said the special resolution tabled at the EGM in respect of the proposed SCR is required to be approved by at least 50% in number of the non-interested shareholders, and 75% in value to the votes attached to the shares held by the non-interested shareholders that are cast either in person or by proxy at the EGM; and that the value of the votes cast against the special resolution is not more than 10% of the votes attaching to all shares held by the non-interested shareholders of the total voting shares of Tanah Makmur, pursuant to the Malaysian Code on Take-Overs and Mergers 2010.

Tanah Makmur said the application to the High Court of Malaya for an order to confirm the proposed SCR would be made in due course.

To recap, Tanah Makmur’s major shareholder Tengku Mahkota of Pahang Tengku Abdullah Sultan Ahmad Shah, who has proposed to privatisate the firm, has raised the offer price to RM1.90 from RM1.80 previously.

In April, Tengku Abdullah and parties acting in concert, who collectively had 68.08% as at Oct 24, 2016, proposed a privatisation exercise via a selective capital reduction (SCR) to buy out the remainder stake they don’t own at RM1.80 a share.

Under the proposed SCR, Tanah Makmur will reduce the par value of its shares from 50 sen to 25 sen, thus creating an additional share premium reserve.

A bonus issue has also been proposed, as the number of Tanah Makmur shares to be cancelled is higher than the existing issued and paid-up capital.