Amcorp group proposes to privatise Amcorp Properties


Amcorp Group Bhd, Clear Goal Sdn Bhd and AmBank chairman Tan Sri Azman Hashim acting as the major shareholders of Amcorp Properties Bhd (AmProp) proposed for a selective capital reduction and repayment (SCR) exercise to privatise AmProp.

They added the listing status of Amprop brings minimal benefit to the company and its shareholders, the company noted in a filing to Bursa Malaysia today.

The trading liquidity of AmProp shares has been very low with an average daily trading volume of 88,813 AmProp shares for the past three years up to May 7. 

They said the average daily trading value merely represents approximately 0.05% of the free float of AmProp shares. 

According to the proposed SCR, the entitled shareholders of AmProp will receive a cash amount of 90 sen for each ordinary share, the group said in a filing to Bursa Malaysia. 

As of May 6, the issued share capital of AmProp is RM807.87 million comprising 733.18 million of AmProp shares and 509.3 million outstanding Class B redeemable convertible preference shares. 

As of Friday, AmProp also has 74.58 million outstanding options pursuant to the company’s existing employee share scheme held by the directors and employees of AmProp and its subsidiaries which are exercisable into 74.58 million new AmProp shares at exercises prices ranging between 36 sen to 59 sen. 

The major shareholders said the proposed SCR is to ensure greater flexibility in managing AmProp group’s business amidst a challenging economic and operating environment. 

They said over the past three financial years and the nine-month financial period ended Dec 31, 2020, the share of profits contributed by AmProp’s joint ventures have substantially made up the consolidated pre-tax profit of AmProp. 

For the nine-month period, AmProp’s shares of results of JV stood at RM19.43 million while its pre-tax profit stood at RM10.8 million. 

The share of profits derived entirely from overseas development projects while on the domestic front the group only has an ongoing development project which is the Sibu Jaya township in Sarawak. 

“Premised on the above, there is no certainty that AmProp can continue to declare and pay consistent dividends like those in the past.