KUALA LUMPUR (March 16): Shares in MWE Holdings Bhd jumped as much as 29.2% — just shy of the 30% limit-up threshold — as news broke of the privatisation offer extended by tycoon Tan Sri Surin Upatkoon for the diversified entity at RM1.75 per share.

At 3.18pm, the stock slipped to RM1.62 a share after hitting an intra-day high of RM1.68 — its highest since May last year. The current stock price is up 32 sen or 24.6% from yesterday's close, which gives it a market capitalisation of RM299.31 million.

It saw nearly 2 million shares traded, sharply higher than its 200-day average trading volume of 46,402 shares, or the 30-day average of 53,410 shares.

Earlier today, the group said it has received a privatisation offer from Pinjaya Sdn Bhd, which is owned by Surin, at RM1.75 per share — a premium of some 34.6% from the stock's closing price yesterday of RM1.30 apiece.

The corporate exercise is to be undertaken via a selective capital reduction and repayment exercise.

Pinjaya, and parties acting in concert with it, now commands an estimated 32.62% stake in MWE.

Surin, who is also chairman of Magnum Bhd, wants to privatise the diversified entity to have greater flexibility in executing MWE's long-term business strategy.

The billionaire tried to take over MWE via his private vehicle Pinjaya in November 2015, at RM1.70 per share.

The 2015 offer lapsed the following month, after Pinjaya declined the request by MWE's non-interested directors for a one-month extension to consider the offer.

According to MWE's website, among the company's businesses are garment manufacturing, property development and the distribution of commercial trucks.