PETALING JAYA: DAIMAN DEVELOPMENT BHD’s major shareholders, who own a combined 53.38% stake in the property company, have proposed a selective capital repayment (SCR) of RM3 a share as they seek to take it private.
Daiman Holdings Sdn Bhd, which owns 50.01%, and other interested directors had yesterday put forward the corporate exercise to the board of Daiman Development.
At RM3, this is 38.2% over the pre-suspension price of RM2.17. Trading was halted for the announcement yesterday. The net asset per share is RM5.62.
As at Aug 24, Daiman’s issued share capital was RM232.75mil comprising 210.57 million shares (excluding 1.618 million treasury shares).
The major shareholders’ combined 53.38% stake totalled 112.39 million shares, which would not be entitled to the SCR and repayment.
However, the entitled shareholders who hold the remaining 98.175 million shares would receive RM295.48mil based on RM3 a share.
This would reduce the share capital by up to RM295.48mil. Since the capital reduction is higher than the current share capital, a bonus issue would be proposed to increase it to a level where the capital reduction can be carried out.
“Daiman is expected to procure the necessary funding for the proposed SCR,” it said, adding that it did not intend to maintain the listing status.
On the rationale, Daiman Holdings said due to the tightening of credit controls by financial institutions, oversupply of residential properties and increasing cost of construction, the group was operating in a challenging environment.
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