KUALA LUMPUR (Nov 13): Cycle & Carriage Bintang Bhd's (CCB) share price extended gains for the second consecutive day today, rising as much as 26.4% since opening this morning, after its major shareholder proposed to take the company private at RM2.20 per share.
At 3.20pm, the counter was up 43 sen or 25.75% at RM2.10, with 993,600 shares done. This brings its market capitalisation to RM211.56 million.
At this juncture, the proposed offer represents a 4.8% upside.
The stock has surged some 64% from last Friday's closing price of RM1.29. Trading was suspended on Monday pending the announcement. Prior to this privatisation offer, the counter was trading between RM1.24 and RM1.61 this year.
CCB's controlling shareholder Jardine Cycle & Carriage Ltd had proposed a selective capital repayment and reduction at RM2.20 per share compared with its last traded price of RM1.29 — the lowest level since April 2009.
The proposed selective capital repayment and reduction will pave the way for the privatisation of the automotive player, whose share price has been on a downhill trend in the past five years amid dismal earnings performance.
CCB said the capital repayment will provide minority shareholders a "clean cash exit opportunity" from their investments in the auto group.