KUALA LUMPUR (Oct 27): Perak Corp Bhd declined 6.4% in anticipation that the planned privatisation of the company via a selective capital reduction and repayment will be scrapped.
This is due to opposition from substantial shareholder Sime Darby Bhd, which owns 6.13% in Perak Corp.
At 10.17am, Perak Corp, a property developer and port operator, declined 23 sen to RM3.34 to become the third-largest decliner on Bursa Malaysia.
A total of 441,800 shares changed hands.
Perak Corp had earlier reached an intraday low of RM3.20. For comparison, the FBM KLCI rose 0.52 point or 0.03%.
Perak Corp's share trade resumed today following a suspension last Friday.
In an announcement to Bursa Malaysia last Friday, Perak Corp said it would deliberate on the possible withdrawal of the selective capital reduction and repayment exercise.
The deliberation comes after Perak State Development Corp (Perbadanan Kemajuan Negeri Perak (PKNP) ) together with Fast Continent, Cherry Blossom and Perak Equity, which have collectively proposed the privatisation of Perak Corp at RM3.90 a share, requested for withdrawal of the exercise.
The request followed Sime Darby's decision to vote against the exercise. PKNP owns a direct stake of 52.27% in Perak Corp.