KUALA LUMPUR (March 18): Shares in Cycle & Carriage Bintang Bhd (CCB) hit limit up in morning trade today after its share price jumped 29.76% or 50 sen to RM2.18 following the decision of its largest shareholder to privatise the country’s biggest Mercedes-Benz dealer.
At RM2.18, the group had a market capitalisation of RM169.25 million. It had seen some 138,800 shares change hands. The stock had climbed 24.57% year-to-date (YTD).
CCB was the second top gainer on Bursa as at the time of writing today.
Yesterday, the group told Bursa that its largest shareholder Jardine Cycle & Carriage Ltd (Jardine CCL) had made a fresh bid to privatise the Mercedes-Benz dealer at RM2.40 per share.
Jardine CCL owns a 59.1% stake, representing 59.54 million shares in CCB.
On Nov 11, 2019, Jardine CCL offered to buy out minority shareholders of the company via a proposed selective capital reduction and repayment exercise for RM2.20 per share.
However, last year, Jardine CCL failed in its bid to privatise the company after 13.18% of disinterested shares voted against the selective capital reduction, higher than the 10% allowable threshold.
The unconditional voluntary takeover offer, which will be satisfied via cash, is at a premium of six sen or 2.56% to CCB’s net traded assets of RM2.34 per share.