KUALA LUMPUR: MAA Group Bhd’s major shareholder, the Melewar group's proposed plan to take it private through a selective capital reduction (SCR) failed. Its shares closed 20 sen down to 79.5 sen.
They had proposed that the company undertake a SCR and repayment of RM1.10 a share.
However, the plan via the SCR did not get full support from all the minority shareholders during the EGM on Wednesday.
Shareholders owning 69.8% of the shares had voted in favour of the SCR but 10.77% had objected to the plan. MAA Group had needed 75% of the shares for the SCR to go through.
The group said the board, with the exception of Tunku Datuk Yaacob Khyra and Tunku Yahaya@Yahya Tunku Tan Sri Abdullah who were deemed to be interested parties, would decide on the company’s next course of action.
Melewar Acquisitions Ltd and Melewar Equities (BVI) Ltd collectively own a 38.67% stake in MAA.
Yaacob and his brother Yayaya are directors of both companies.
The Melewar Group, in the letter of proposal to MAA, noted that none of the company’s proposals to turnaround the business in recent years had materialised, and that the SCR provided the best avenue for shareholders to “realise their investments in the company in an expeditious manner”.
On March 29, the company announced that the board had accepted the proposal, and that an EGM would be convened for shareholders to vote on the matter.
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