The major shareholders of TH Group Bhd have made a RM136 million offer to take the plantation and construction group private. The offer, at 75 sen a share, is a 30.4 per cent premium over its last closing price of 57.5 sen.
The stock has been halted from trading since last Thursday. It will resume trade today.
It will carry out a selective capital repayment (SCR) for this purpose under which shareholders other than the major ones will get paid.
“The proposed SCR will be funded via borrowings by TH Group, including the possible issuance of private debt securities,” Tung Hup Holdings Sdn Bhd, a substantial shareholder, said in a letter to the company.
Tung Hup and its related parties hold 53.26 per cent of TH Group.
As at last Thursday, TH group had a paid-up capital of RM386.55 million comprising the same number of RM1 shares. Before the SCR, it will reduce the par value of its shares to 75 sen from RM1.
“The proposed SCR offers an opportunity to the other shareholders to realise their investments in TH Group at an attractive premium above the market price,” Tung Hup said.
The deal will require the approval of TH Group shareholders at a meeting, the Foreign Investment Committee, the High Court, creditors and the Securities Commission.
TH Group’s net profit rose 26 per cent to RM7.1 million in the second quarter to June 30 2008 due to higher crude palm oil prices.
Revenue was up 27 per cent to RM112 million.
Shares of the Sabah-based group have been listed on Bursa Malaysia since March 1 1999.
The group has cultivated some 11,469ha of oil palm in Sabah and operates a 90-tonne palm oil mill.
TH Group also operates the NCI Cancer Hospital in Nilai, Negri Sembilan.
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