KUALA LUMPUR (Feb 28): Shares in MAA Group Bhd hit limit up today, after its major shareholder proposed to take the company private.

The stock opened at 90 sen this morning — up 30 sen or 50% from its last traded price of 60 sen on Tuesday — making it one of the top three gainers on the local bourse today. The counter was suspended from trading on Wednesday to make way for the proposed privatisation announcement.

A total of 63,100 shares were traded as at noon break today.

On Wednesday, MAA said Melewar Group, its major shareholder with a collective 38.67% stake in MAA, is looking to take the Practice Note 17 (PN17) company private through a selective capital reduction and repayment exercise (SCR), of RM1.10 per share.

Under the proposed SCR, entitled MAA shareholders will receive a total capital repayment of RM184.51 million, representing a cash amount of RM1.10 for each share, held on an entitlement date to be determined later.

At RM1.10, the SCR offer price represents a premium of three sen over the market price of MAA shares on May 5, 2016, of RM1.07 — the highest traded market price the stock reached since the group was designated a PN17 company.

MAA was classified as a PN17 company on Sept 30, 2011, following the disposal of its major business, after which it had said it would be exploring various proposals to enhance its earnings profile and regularise its financial condition.