KUALA LUMPUR (Sept 30): MMC Corp Bhd shareholders on Thursday approved its controlling shareholder Tan Sri Syed Mokhtar Albukhary's plan to take the company private.

According to MMC, 99.75% of the shareholders voted in favour of the tycoon’s privatisation plan in an extraordinary general meeting (EGM) on the same day.

“The special resolution in respect of the proposed selective capital reduction (SCR) and repayment exercise of the company pursuant to Section 116 of the Companies Act 2016 as set out in the notice of the EGM of the company dated Sept 8, 2021 was duly approved by the disinterested shareholders of the company in the EGM of the company held on Thursday.

“Based on the results of the poll validated by SKY Corporate Services Sdn Bhd, the independent scrutineer appointed by the company, the special resolution was voted for by 85% in number of the disinterested shareholders and 99.75% in value of the votes attached to the ordinary shares in MMC held by the disinterested shareholders that were cast either in person or by proxy in the EGM.

“Further, 0.19% of the votes attached to all MMC shares held by the disinterested shareholders of the total voting shares of MMC voted against the special resolution,” it said.

Permodalan Nasional Bhd (PNB), MMC’s second largest shareholder with a 20.97% stake, when contacted said: “In the case of MMC’s proposed SCR and repayment exercise, after taking into consideration all factors, PNB is supportive of the SCR as it provides an opportunity to cleanly monetise a long-held investment at a 73.6% premium to the undisturbed market price.

“PNB will be reinvesting the proceeds in a manner consistent with its investment strategy of greater diversification across multiple asset classes.

“As an institutional investor, PNB strives to enhance shareholder returns for its portfolio of companies with the ultimate aim of generating sustainable returns for its 14.5 million account holders,” it told theedgemarkets.com.

On June 3, Syed Mokhtar, via his private vehicle Seaport Terminal (Johore) Sdn Bhd (STJSB) which owns a controlling 51.76% stake in MMC, announced that he plans to take the company private via an SCR exercise at RM2 per share.

This would see the tycoon forking out RM2.94 billion to acquire the remaining 48.24% stake he does not own in MMC.

According to STJSB, the SCR is being done to allow greater flexibility to MMC in managing and developing its existing businesses, while exploring opportunities without regulatory restrictions and compliance costs associated with its listing status.

MMC shares continued to rise on Thursday, closing 10 sen or 5.41% higher at RM1.95, valuing the group at RM5.21 billion.

Its share price has climbed 50% since the last traded price of RM1.30 before the privatisation announcement on June 3.

MMC is mainly involved in the ports and logistics, energy and utilities, as well as engineering and industrial development sectors. It holds 38.45% in Malakoff Bhd. It also owns Pelabuhan Tanjung Pelepas Sdn Bhd, Johor Port Bhd, Northport (Malaysia) Bhd, Penang Port Sdn Bhd and Tanjung Bruas Port Sdn Bhd, as well as logistics operator Kontena Nasional Bhd and Senai Airport Terminal Services Sdn Bhd — the operator of Senai International Airport in Johor and Kertih Airport in Terengganu.

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