SC approves group’s application to withdraw proposal by major shareholders

KUCHING: The proposed privatisation of construction firm Zecon Bhd is finally off — now that the Securities Commission (SC) has given its consent.

The SC approved Zecon’s application to withdraw the proposal to take the company private by major shareholders via a selective capital reduction (SCR) and repayment.

In July last year, major shareholder Dawal Capital Sdn Bhd,together with Datuk Zainal Abidin Ahmad, Tan Sri Hamid Bugo and Zainurin Ahmad, offered to pay minority shareholders 80 sen per share in cash amounting to RM35.78mil for the proposed SCR. Entitled holders of the company warrants (2007/2017) will receive 5sen per warrant .

The proposed SCR was, however, opposed by substantial shareholder Datuk Bolhassan Di @ Ahmad Di, who owns 11.5 million shares or 9.66% in the company. That block of shares represents 25.71% of the voting shares held by the entitled shareholders.

Bolhassan, also non-independent non-executive director, had told the company on April 1 that he would vote against the SCR proposal at its extraordinary general meeting (EGM) to be convened.

Zecon said following the withdrawal of the proposed SCR, the proposed EGM had been called off.

In the past two weeks, Zecon share price had rallied to 88.5 sen from below 70 sen while its warrants had surged to a high of 37 sen from 7.5 sen.

Meanwhile, Borneo Oil Bhd resold another 1.048 million shares priced between 64sen and 65sen for more than RM673,500 last Thursday.

Two day earlier,it resold 420,000 shares between 65 sen and 66.5 sen. The company has reduced the number of treasury shares to 615,000.

Borneo Oil owns fast-food chain SugarBun, which has some 70 franchised restaurants in Malaysia and abroad.

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