KUALA LUMPUR: Shares of DKSH Holdings
(Malaysia) Bhd were among the most active in early trading at Bursa Malaysia today after the company’s major shareholder, DKSH Resources (Malaysia) Sdn Bhd, proposed a privatisation.
At 10.05 am, its shares rose 68 sen to RM5.95, with 439,900 shares traded.
In a note today, Hong Leong Investment Bank Bhd (HLIB) said the privatisation, via a selective capital reduction at RM6.15 per share, offers minority shareholders a fair and attractive exit, representing a 16.7 per cent premium to the last traded price.
"Given the stock’s low liquidity, volatile operating conditions, and the offeror’s clear intention to delist the company, we view the selective capital reduction as a timely opportunity for shareholders to realise value at a premium.
"We recommend accepting the offer,” HLIB said.
HLIB noted the offer aligns with the group’s strategic priorities.
"Management highlights that the volatile operating environment-marked by geopolitical risks, macroeconomic uncertainties, higher tariff pressures, and reduced demand visibility-poses increasing challenges for DKSH Malaysia.
"The privatisation would provide the offeror greater operational flexibility and allow long-term strategic decisions to be executed without the constraints of public listing requirements,” it added.
HLIB also said the parent company does not intend to maintain DKSH Malaysia’s listing status, reinforcing the strategic aim to streamline the corporate structure and centralise control. - Bernama
