PKNP aborts plan to take Perak Corp private after Sime Darby’s opposition

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KUALA LUMPUR (Oct 24): Perak Corp Bhd announced today that its board would deliberate on the possible withdrawal of the proposed selective capital reduction (SCR) and repayment exercise that would pave way for Perbadanan Kemajuan Negeri Perak (PKNP) to take the company private at RM3.90 per share.

The deliberation comes after PKNP, together with three other associated firms, wrote to Perak Corp to request the company to withdraw the proposed SCR, subject to the Security Commission's (SC) consent.

The three other associated firms are Fast Continent, Cherry Blossom and Perak Equity.

PKNP’s request is in view of Sime Darby Property Bhd’s (Sime Property) — a substantial shareholder holding 6.13% equity stake's — opposition against the proposed SCR and repayment.

Perak Corp announced to Bursa Malaysia that Sime Property had written to inform Affin Hwang Investment Bank Bhd it would be voting against the proposed SCR and repayment at the extraordinary general meeting (EGM), to be convened in relation to the proposal.

“The board of Perak Corp will deliberate on the withdrawal letter and decide on the next course of action to be taken in relation to the proposed withdrawal, where an announcement will be made in due course," Perak Corp told Bursa Malaysia in a filing.

Currently, state-owned PKNP owns a direct stake of 52.27% in Perak Corp, while the other three companies hold 0.63% shares.

The filing also revealed that Sime Property’s shareholding of 6.13% translates into 13% of the voting shares held by the entitled minority shareholders.

It is learnt that the contention point is that the offer of RM3.90 is way below the asset value of Perak Corp, which owns a large landbank in Perak that has not been revalued for years, and port assets.