PETALING JAYA: Toyo Ventures Holdings Bhd
has proposed a selective capital reduction and repayment exercise that will see certain shareholders receive 28 sen per share in cash, as the group plans to subsequently delist from Bursa Malaysia.
In a filing with Bursa Malaysia, the company said the proposal, put forward by substantial shareholders Eng Lian (L) Inc and Bukit Asa Sdn Bhd, involves cancelling the shares held by entitled shareholders in exchange for cash, leaving non-entitled shareholders holding the entire equity interest in the company upon completion of the exercise.
According to the proposal letter dated Oct 19, the offer price of 28 sen per share represents a 16.67% premium over Toyo Ventures’ closing market price of 24 sen on Oct 16, the last full trading day before the proposal letter was served.
The offer price represents premiums ranging from 13.82% to 22.32% against the five-day, one-month, three-month, six-month and one-year volume-weighted average market prices of the firm’s shares.
Toyo Ventures said the capital reduction exercise is intended to be funded through a combination of internally generated funds from Toyo Ventures and its subsidiaries, financing facilities to be obtained by the group and/or advances from Eng Lian Enterprise Sdn Bhd, the ultimate offeror.
Toyo Ventures said it does not intend to maintain the listing status of the company.
It said the exercise would allow it to refocus on its core businesses and pursue its long-term strategies amid a challenging operating environment.
