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KUALA LUMPUR (March 27): GuocoLand (Malaysia) Bhd (KL:GUOCO) said the proposal by its controlling shareholder to privatise the company will be tabled at an extraordinary general meeting (EGM) on a date to be fixed later.
In a filing with Bursa Malaysia, the company said its board — excluding interested directors — deliberated on the proposal on Thursday after taking into consideration the advice of the independent adviser, and has resolved to table a resolution on the matter at the EGM to disinterested shareholders for their approval.
GuocoLand Malaysia announced on Feb 3 that its controlling shareholder, GLL (Malaysia) Pte Ltd (GLLM), had submitted a proposal to privatise the company via a selective capital reduction and capital repayment exercise at RM1.10 per share.
Entitled shareholders holding 244.95 million shares, or 34.97% of the company's shares, stand to receive RM269.45 million in total capital repayment based on the offer price.
GuocoLand Malaysia is the property arm of the businessman Tan Sri Quek Leng Chan-controlled Hong Leong Group. Quek himself, who owns a direct 2.78% stake in GuocoLand Malaysia or 19.51 million shares, is entitled to receive RM21.46 million.
GLLM, a wholly-owned unit of Singapore-listed GuocoLand Ltd (GLL), had said that the privatisation will be funded using excess cash within GuocoLand Malaysia, with the remainder to be met through advances or equity injections from GLLM or GLL.
Upon completion, GLLM will cancel the 244.95 million shares under the selective capital reduction, reducing total shares outstanding to 455.51 million.
The remaining shares will be fully held by GLLM, resulting in GuocoLand Malaysia becoming an indirect wholly-owned subsidiary of GLL. Currently, GLLM holds 65.03% of GuocoLand Malaysia.
GLLM does not intend to maintain GuocoLand Malaysia’s listing status and will apply to Bursa Securities to delist the company upon completion of the exercise.
GuocoLand Malaysia closed unchanged at RM1.06 on Thursday, giving the company a market capitalisation of RM742 million.
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