KUALA LUMPUR (Nov 11): Cycle & Carriage Bintang Bhd’s (CCB) controlling shareholder Jardine Cycle & Carriage Ltd (Jardine CCL) proposed to the board to undertake a selective capital reduction and repayment (SCR) at RM2.20 per share, according to a filing to Bursa Malaysia this morning.
The stock was last traded at RM1.29.
The proposed SCR will pave the way for the privatisation of the auto player, the share price of which has been downhill in the past few years to a 10-year low.
In the filing, CCB said the SCR entails a selective capital reduction and a corresponding capital repayment of a cash amount of RM2.20 per ordinary share in CCB held by all shareholders, except for Jardine CCL.
“Upon the completion of the proposed selective capital repayment, Jardine CCL will own 100% equity interest in CCB and Jardine CCL does not intend to maintain the listing status of CCB on the Main Market of Bursa Malaysia,” said the announcement.
CCB shares have been suspended from trading today.