KUALA LUMPUR (Feb 11): Minority shareholders of Cycle & Carriage Bintang Bhd (CCB) have blocked the board's proposed selective capital repayment and reduction (SCR) of RM2.20 per share, which was aimed to pave the way for the privatisation of the auto distributor.
The SCR resolution was not carried at an extraordinary general meeting today as 13.18% of disinterested shares (of the total voting shares) voted against the resolution. That is more than the 10% allowed threshold.
Note that the resolution must not be voted against by more than 10% of the votes attached to all the disinterested shares of CCB's total voting shares.
Furthermore, the number of disinterested shareholders that voted for the resolution was 46.22%, which is less than the minimum requirement of a simple majority for the resolution to be passed.
Meanwhile, the 57.94% in terms of value that voted for the resolution is also short of the required 75%, the group's Bursa Malaysia filing showed.
CCB's shares, which leapt 14.8% this morning before the results of the EGM on the privatisation deal was released, pared gains and was down one sen or 0.62% at RM1.61 at the time of writing. Some 2.37 million shares were traded.
The current share price is some 27% below the SCR of RM2.20, but still above the level it was at before the announcement of the privatisation offer.