MBf Holdings Bhd's board of directors today agreed to take the company private via a selective capital reduction(SCR) and repayment exercise. The board also proposed the acceleration of the maturity of MBfH's warrants and the cancellation of warrants thereof (WAC). In a filing to Bursa Malaysia today, the company said the board however would table the proposal to MBfH's shareholders and warrant holders respectively for their consideration, subject to the recommendation of an independent adviser. It said the major shareholders promoting the proposals include Impact Action Sdn Bhd, Market Share Investments Ltd, Nadin Holdings Sdn Bhd and Tor Private Ltd. The capital repayment of the proposed 65 sen per MBfH share, represents a premium of approximately 23 per cent and 33 per cent over the five-day and three-month volume-weighted average market price of MBfH shares, up to and including January 8 this year, of 53 sen and 49 sen respectively. It said the total cash capital repayment under the SCR has been proposed to be funded by the major shareholders and/or via bank borrowings to be obtained by MBfH. As for the proposed WAC, warrant holders would receive five sen for eachwarrant held upon completion of the proposal. It added that the proposed WAC will provide the warrant holders an opportunity to monetise their holdings of warrants, which have been out-of-the-money since the listing in 2003. To facilitate the implementation of the proposed WAC, the warrant deed poll dated March 25, 2003 is to be modified by way of a memorandum of a supplemental deed to allow for the early expiration of the warrants, it said. To date, MBfH has 265,063,616 warrants in issue, of which 80.87 per cent are held directly by the major shareholders collectively. The company said the total cash consideration for the WAC was proposed to be funded by the major shareholders and/or via bank borrowings to be obtained by MBfH. -- Bernama
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