Kayin Holdings, the vehicle of the Wen family, was earlier looking to privatise SPB at RM5.70 per share through a selective capital reduction (SCR) and repayment exercise.
However, due to the revised SCR announced on Monday, the issued share capital will reduced by up to RM655.01mil.
Before the revision, the capital repayment would have amounted 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).
“As a results of the revised offer price, the capital reduction is still higher than the existing issued share capital and hence a bonus issue is still proposed to be undertaken to increase the share capital to a level which is sufficient for the capital reduction to facilitie the proposed SCR,” it said.
Recall that on Oct 25, a statement by Kayin, which holds a 68.2% stake in SPB, a glut in the property market is expected to limit the group’s development activities over the near to medium term.
Kayin had then said the decision to privatise the group via the capital reduction and repayment exercise would provide the group with greater flexibility to manage and develop its businesses and undertake corporate exercises which may otherwise require lengthy shareholder and regulatory approvals.
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