KUALA LUMPUR: Khor Teng Tong Holdings Sdn Bhd, which controls a 32.3% equity stake in Hunza Properties Bhd, has revised its offer price for the proposed privatisation of the Penang-based property firm to RM2.90 a share, from RM2.50 previously.

In a filing with Bursa Malaysia yesterday, Hunza said it had received a letter from Khor Teng Tong Holdings to revise the offer price for the proposed selective capital reduction and repayment (SCR) to RM2.90 for each existing Hunza share held by the entitled shareholders, or RM267.6 million in total, up from RM230.7 million previously. The offer price of RM2.90 per share represents a 10.3% premium to Hunza’s prevailing market price of RM2.63. Hunza’s share price had surged as much 13.3% to a high of RM2.38 on April 2, following the news on the privatisation offer.

Hunza’s share price gained 4.37% yesterday to RM2.63, with a market capitalisation of RM591.98 million. However, the revised offer price of RM2.90 is at a discount of 16.4% to Hunza’s net asset value per share of RM3.47 as at March 31.

Hunza has fared well in terms of earnings for the nine months ended March 31. The property firm’s net profit nearly doubled to RM25.75 million for the financial period under review, compared with RM13.48 million.

In March, Khor Teng Tong Holdings expressed its intention to take Hunza private through an SCR. Khor Teng Tong Holdings and its parties acting in concert now collectively hold a 59% stake in Hunza. Hunza’s other substantial shareholders are Lembaga Tabung Haji, which owns 7.28%, and Yayasan Bumiputra Pulau Pinang  (6.45%).

This article first appeared in digitaledge Daily, on August 5, 2015.