KUALA LUMPUR – Tan Sri Syed Mokhtar Albukhary has offered to take MMC Corp Bhd private by way of selective capital reduction (SCR) for RM2.94 billion, or RM2 per unit for each ordinary share, and a repayment exercise.
In a Bursa Malaysia filing today, MMC displayed the offer letter from Seaport Terminal (Johor) Sdn Bhd (STJSB), which holds a 51.76% stake, or 1.58 billion shares, in MMC.
Syed Mokhtar holds the entire equity interest in STJSB via Indra Cita Sdn Bhd.
The exercise is for the remaining 1.46 billion shares, or 48.24%, that STJSB does not own. It will fork out RM2.94 billion, or RM2 per share, for it.
“Upon the approval and successful implementation of the proposed SCR, the share capital of MMC will be reduced by RM2.93 billion by way of the cancellation of RM1.46 billion in MMC shares held by the entitled shareholders at the SCR offer price.”
However, given that the capital reduction of the proposed SCR is higher than the existing issued share capital of MMC of RM2.34 billion, comprising 3.04 billion ordinary shares, and to facilitate the transaction, a bonus issue is proposed to be undertaken by MMC.
It will then increase the share capital of MMC up to a level sufficient to carry out the proposed SCR.
The proposed SCR provides greater flexibility to MMC in managing and developing its existing businesses, while exploring opportunities without regulatory restrictions and compliance costs associated with its listing status, as it considers to be suitable, to improve the utilisation of resources, prospects and future growth of the group in order to remain competitive. – Bernama, June 3, 2021
