KUALA LUMPUR: Suiwah Corp Bhd’s shares surged 22% in early trade Monday after its major shareholder offered to take the company private by way of a selective capital reduction (SCR) and repayment exercise.
The Penang-based company surged 22.02% or 48 sen in early trade to RM2.66, its highest since December 2017. It is also the top gainer on Bursa Malaysia. It is currently trading at a PE ratio of 11.36 times.
The proposed SCR entails a capital repayment which is equivalent to a cash amount of RM2.80 per ordinary share each in Suiwah held by the entitled shareholders on an entitlement date to be determined later.
The offer price represents a premium of 28.44% against its five-day volume weighted average price of RM2.18.
Suiwah founder and managing director Datuk Hwang Thean Long, the ultimate offeror for the exercise, together with the parties acting in concert, collectively hold a 30.91% stake in the group.
The offer will remain open for the board’s acceptance until Feb 11, 2019.