Selective capital reduction and repayment exercise planned
Hunza Properties Bhd’s major shareholder has proposed to take the Penang-based property company private at RM2.50 a share.
Hunza said that its board had received a letter from Khor Teng Tong Holdings Sdn Bhd (KTTH) expressing its intention to undertake a selective capital reduction (SCR) and repayment exercise to take Hunza private. KTTH owns a 32.3% stake in Hunza.
“The board, save for the interested directors, will deliberate on the proposed SCR and decide on the next course of action. Accordingly, further announcement will be made in due course,” Hunza told Bursa Malaysia.
KTTH and parties acting in concert in the corporate exercise own a combined 59% stake, or 132.796 million shares.
Trading in Hunza shares was suspended on Thursday pending this announcement. The counter was last quoted at RM2.10.
Trading in the counter will resume on Monday.
The SCR at RM2.50 represents a 29.53% premium over Hunza’s market price of RM1.93 over a six-month period.
Under the corporate exercise, Hunza will undertake the SCR and repayment exercise to all shareholders except for the non-entitled shareholders who own a combined 41% or 92.289 million shares.
Hunza also said the company’s current paid-up was RM225.08mil comprising 225.08 million shares. The proposed SCR would reduce the paid-up by RM230.72mil by cancelling 230.72 million shares.
As the number of Hunza shares to be cancelled under the SCR would be higher than its paid-up, it will undertake a bonus issue to increase the paid-up capital to enable the proposed SCR.
Upon completion of the proposed SCR, all Hunza shares held by entitled shareholders will be cancelled. - By The Star
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