KUALA LUMPUR, June 4 ― Shares of MMC Corporation Bhd were higher following an announcement that Seaport Terminal (Johore) Sdn Bhd (STJ) had intended to take MMC private via selective capital reduction and repayment exercise. MMC has received a letter from its controlling shareholder, STJ, a.
PETALING JAYA: Billionaire Tan Sri Syed Mokhtar Al-Bukhary has proposed to take conglomerate MMC Corp Bhd private at almost RM3bil and offered to buy out exiting shareholders at a premium of over 70%.
His indirectly owned company, Seaport Terminal (Johore) Sdn Bhd, told Bursa Malaysia yesterday that it plans to privatise MMC by way of a selective capital reduction and repayment (SCR) exercise.
The offer price is RM2 per share as compared to RM1.30 yesterday, prior to trading suspension in the afternoon session. The share price has jumped by almost 23% in the last two weeks.
A SCR is a process of cancelling only certain shares out of the entire shareholding, allowing certain shareholders to exit. The remaining shareholder will waive any right to a return of capital and hence, the capital or money will only be paid to the exiting shareholders.
Shares in MMC Corp Bhd gapped up at the opening bell this morning as the stock hit limit up with a 30% jump to RM1.69, its highest level since March 2018. The big leap in the conglomerate's share price came after yesterday’s announcement that tycoon Tan Sri Syed Mokhtar Albukhary had proposed to take the company private at RM2.94 billion via selective capital reduction (SCR) at RM2 per share.