Kayin Holdings Sdn Bhd, the Malaysian investment vehicle of the Wen Family, which holds a 68.2 percent stake in property investment company Selangor Properties, has offered to take Selangor Properties private for 622.27 million ringgit ($149.3 million).
Kayin has proposed a capital reduction and repayment of $1.37 per share, representing a 40.39 percent premium to the share’s closing price on the latest practicable date and a 19.62 percent premium over the one-year volume weighted average market price.
The privatization of Selangor Properties by way of selective capital reduction (SCR) is intended to provide it with greater flexibility to manage and develop its existing businesses and undertake corporate exercises which may otherwise require lengthy shareholders’ and regulatory approvals.
Shareholders holding the remaining 31.77 percent stake will receive a total capital repayment of $149.3. The proposed SCR is expected to be funded via the company’s internally generated funds and bank facilities obtained by the company.