Friday 29 Mar 2024
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KUALA LUMPUR (Aug 19): Automotive friction materials maker Mintye Bhd said its controlling shareholder has offered to take the group private.

Yatee & Sons Sdn Bhd has proposed a selective capital reduction (SCR) and a corresponding capital repayment of RM1.30 per Mintye share, which is a 35.42% premium to the last closing price of 96 sen last Friday, said Mintye in a bourse filing today.

As at Aug 15, Yatee held 35.98 million shares in Mintye, representing a 59.17% stake in the company.

In its offer letter, Yatee offered to pay shareholders who hold the remaining 24.82 million shares or a 40.83% stake, a total capital repayment of RM32.27 million.

"The proposed SCR offers entitled shareholders an opportunity to exit and realise their investments in Mintye immediately at a premium over the market price of Mintye shares, which they otherwise may have been unable to due to low trading liquidity," the letter said.

Yatee added that it does not intend to maintain the listing status of Mintye on the Main Market of Bursa Malaysia.

"The privatisation of Mintye by way of the proposed SCR would provide Mintye with greater flexibility and develop its existing businesses without the regulatory restrictions and costs associated with being listed," it said.

The proposed SCR is expected to be funded via the group's internally generated funds, it added.

Mintye said its directors, save for Yeo Kim Swee and Yeo Kim Soon who are deemed interested in the SCR, will deliberate on the exercise offer and decide on the next course of action.

"Accordingly, a further announcement will be made in due course after the board's deliberation," it said.

Mintye's share price closed four sen or 4.17% higher at RM1 today, with a market capitalisation of RM60.8 million.

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