KUALA LUMPUR: Tan Sri Syed Mokhtar Albukhary has made an offer to take MMC Corp Bhd private via a selective capital reduction and repayment (SCR) exercise.
Under the proposed deal, minority shareholders in MMC Corp will receive RM2.94bil cash, or RM2 per share.
Shares in MMC Corp were last traded at RM1.30 today before the trading was halted in the afternoon session to make way for the announcement.
In a filing with Bursa Malaysia today, MMC Corp said it has received the offer from Seaport Terminal (Johore) Sdn Bhd (STJ).
STJ, the company controlled by Syed Mokhtar, has a majority 51.76% of MMC Corp. The proposed SCR provides an opportunity for minority shareholders to exit the company at a substantial premium to prevailing market price, STJ said in its offer documents.
Shares in MMC Corp have been languishing at around RM1 for the past one year.
The net asset per share of the company stood at RM3.12.
STJ said the proposed de listing of MMC Corp's shares would provide the company "greater flexibility" to manage and develop its existing businesses.
The proposed SCR is subject to shareholders' approval at an EGM to be called later.
"The Board, save for Sharifah Sofia Syed Mokhtar Shah who is an interested director, will deliberate on the Proposed SCR and decide on the next course of action," MMC said.
"Accordingly, a further announcement will be made in due course after the Board’s deliberation," it added.