KUALA LUMPUR (March 19): Cycle & Carriage Bintang Bhd (CCB) saw its share price spike 11% in the morning session today to exceed the RM2.40 offer price by its largest shareholder Jardine Cycle & Carriage Ltd (Jardine CCL).
At noon market break, CCB settled 23 sen or 10.6% higher at RM2.41, after earlier touching an intra-morning high of RM2.48, with some 10.4 million shares traded.
Yesterday, the counter hit limit up, rising 50 sen or 29.8% to close at RM2.18 following the fresh bid by Jardine CCL to privatise the Mercedes-Benz dealer at RM2.40 per share, valuing the company at RM241.79 million.
It said the offer price is final and that it does not intend to revise the offer price.
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.
CCB has been loss-making for two financial years — it posted a net loss of RM12.99 million for the financial year ended Dec 31, 2020 (FY20), versus a wider net loss of RM39.2 million in the preceding year.
Its revenue for FY20 fell 5.2% to RM1.08 billion from RM1.14 billion.