KUALA LUMPUR (May 29): MAA Group Bhd’s minority shareholders have rejected the group's proposed selective capital repayment (SCR) exercise of RM1.10 per share at its annual general meeting today.
This means that MAA will not be taken private at RM1.10 per share. The group's share price slumped 12 sen or 12% to 87.5 sen as market resumed trading in the afternoon.
The SCR was meant to pave the way for controlling shareholder, Tunku Datuk Yaacob Khyra, who controls 38.6% of MAA via Melewar Group, to take MAA private. Yaacob is the only substantial shareholder in MAA.
According to the circular to shareholders, among the conditions of the SCR is that it must not be voted against by more than 10% of MAA's non-interested shareholders.
The main grouse of the minorities is the payout of RM1.10 per share, which works out to RM184.51 million.
As at end-December, MAA — excluding its insurance business in the Philippines — had total assets of RM447.13 million, of which 51.7% or RM231.31 million was cash.
Also as at end-December, MAA’s net asset per share was at RM1.94, which means the SCR of RM1.10 is at a 43% discount to the company’s net assets.
In its circular to shareholders, the group said the SCR offer price of RM1.10 represents a discount of 76 sen (40.9%) to 98 sen (47.1%) to the estimated fair value per MAA share, which ranges from RM1.86 to RM2.08 (of which about 85 sen is attributable to cash and cash equivalents per MAA share as at end-December.