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- The property developer has been classified as a cash company following the completion of the disposal of all its assets and liabilities to Sungei Bagan Rubber Company (Malaya) Bhd (KL:SBAGAN) for RM267.78 million in October last year.
KUALA LUMPUR (Sept 23): Kuchai Development Bhd (KL:KUCHAI) has proposed a special dividend of 44.8 sen per share to be followed by the company's voluntary withdrawal from Bursa Malaysia.
The property developer has been classified as a cash company following the completion of the disposal of all its assets and liabilities to Sungei Bagan Rubber Company (Malaya) Bhd (KL:SBAGAN) for RM267.78 million in October last year.
The deal was done via a issuance of 26.75 million shares at RM10.01 per share. The block represented a 28.79% stake in Sungei Bagan’s enlarged share capital.
“Following the completion of the disposal, Kuchai Development had been seeking suitable business opportunities to regularise its condition but has not been able to secure a suitable business to date,” said Kuchai Development in a bourse filing on Tuesday.
"After having considered the business opportunities and in view of the current business environment, the board is therefore of the opinion that it is in the best interest of the shareholders of Kuchai Development to distribute the company's cash back to its shareholders,” the company added.
Kuchai Development said the dividend, totalling RM55.42 million, will be equivalent to the entirety of the company's cash reserves (after taking into account the estimated interest receivable from the cash reserves and the estimated expenses in relation to the dividend proposal) as at the entitlement date .
As at Sept 10, Kuchai Development had total cash and bank balances of RM58.26 million.
The proposed dividend and exit from Bursa are subject to approval of shareholders at an extraordinary general meeting to be convened, the company said, adding that the proposal is expected to be completed by the first quarter of 2026.
Kuchai Development has appointed Mercury Securities to act as an independent adviser for the proposed delisting.
Last year, shareholders of Kuchai Development were rewarded with bumper dividends of 20 sen per share.
Lee Thor Seng, a low-profile Singaporean, controlled Kuchai Development and Kluang Rubber Company (Malaya) Bhd (KL:KLUANG) via his private arm Nyalas Rubber Estates Ltd.
Nyalas owns a 9.44% direct stake in Kuchai Development and a 42.4% indirect stake in the company via Kluang Rubber and Estate Trust Agencies (1927) Ltd.
On Tuesday, Kuchai Development’s share price closed down three sen or 4.9% at 58 sen, giving the company a market capitalisation of RM72 million.
Sungei Bagan, meanwhile, fell eight sen or 1.33% to RM5.92, valuing the company at RM551 million. The counter has gained over 12% since the end of last year.
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