Selangor Properties revises offer to RM6.30

Selangor Properties Bhd’s (SPB) controlling shareholder, Kayin Holdings Sdn Bhd, has revised the proposed selective capital reduction (SCR) and repayment offer price from RM6 to RM6.30 a share.

In a letter to SPB’s board yesterday, Kayin noted that the revised SCR offer price was arrived at after taking into considerations the closing price of RM4.06 and RM2.24 premium over market price as of Oct 24, 2018, the last full-day trading prior to the service of the proposal letter (LTD).

The revised SCR offer price was also arrived at after taking into considerations the closing price and volume- weighted average market price of the shares prior to the LTD.

Consequential to the revised SCR offer price, the issued share capital of SPB will be reduced by up to RM687.77 million.

“In view that the issued share capital to be reduced is higher than the existing issued share capital of SPB of RM545.37 million, SPB will undertake a bonus issue of up to 382.09 million bonus shares by way of capitalising up to RM382.09 million from the retained earnings of the company, in order to increase the share capital of SPB up to a level which is sufficient for the capital reduction,” the SPB exchange filing yesterday noted.

It added the proposed bonus issue is proposed purely to facilitate the implementation of the proposed SCR. — TMR