PETALING JAYA: Kumpulan Perangsang Selangor Bhd has proposed to undertake a selective capital reduction (SCR) and repayment exercise for Century Bond Bhd (CBB) involving a RM2.15 million capital repayment.
In a filing with Bursa Malaysia, the group said its wholly owned subsidiary Perangsang Packaging Sdn Bhd has served a letter to the board of CBB, setting out its intention for CBB to undertake the proposed SCR.
Upon successful completion of the proposed SCR, Perangsang Packaging which currently holds 98.98% stake in CBB will hold the entire issued share capital of CBB. CBB will become a wholly owned subsidiary of Perangsang Packaging.
Pursuant to the proposed SCR, the entitled shareholders holding 1.02% stake will receive a total capital repayment of RM2.15 million, representing a cash repayment of RM1.75 per CBB share held by the entitled shareholders.
Upon successful completion of the proposed SCR, the share capital of CBB will be reduced by RM2.15 million. The proposed SCR will be funded through internally generated funds of CBB.
To recap, Perangsang Packaging made an unconditional takeover offer on Nov 21, 2016 to acquire all CBB shares at an offer price of RM1.75 per CBB share. The takeover offer closed on Dec 27, 2016.
Subsequent to the takeover offer, CBB was delisted on Jan 18, 2017. CBB shares are no longer traded on the bourse.
“The minority shareholders of CBB do not have any readily available avenue to monetise their investments in CBB. As such, the proposed SCR provides an opportunity for the entitled shareholders to realise their investments, rather than continue to hold the unlisted CBB shares,” the group said.
The exercise is expected to be completed by the fourth quarter of 2019.
Source: The Sun Daily