KUALA LUMPUR: MMC Corporation Bhd has received a letter from its controlling shareholder seeking to privatise the company via a selective capital reduction and repayment exercise of RM2.94 billion, according to a filing with Bursa Malaysia today.
Under the proposal, MMC’s largest shareholder Seaport Terminal (Johor) Sdn Bhd, seeks to cancel all shares held by other shareholders at the offer price of RM2 per share.
Seaport holds a 51.76% stake in the conglomerate that has businesses in utilities, infrastructure as well as port and logistics.
The shareholder also proposed a bonus issue to increase MMC’s share capital to a level sufficient to carry out the capital reduction.
“We confirm that the (proposal) will not fail by reason of insufficient financial capability of MMC and every entitled shareholder will be fully paid in cash,” Seaport’s letter, also filed to the bourse, said.
The letter said Syed Mokhtar al-Bukhary is deemed the ultimate offerer in the proposal through his indirect ownership of Seaport.
MMC said its board will deliberate on the offer and decide on the next course of action.
MMC shares closed 8.33% higher at RM1.30.