Suiwah gets shareholders nod for capital reduction exercise

GEORGE TOWN: Suiwah Corp Bhd’s (SCB) proposal for a selective capital reduction and repayment exercise (SCR) has received the green light from its shareholders.

A total of 205 shareholder representing 98.1 per cent, or 28,451,934 shares, voted for the SCR at an extraordinary general meeting, here, yesterday.

Twenty-three shareholders representing 1.99 per cent, or 577,540 shares, voted against the exercise.

SCB independent non-executive director Jen Shek Voon said this had set the ball rolling towards the company’s privatisation as proposed by its major shareholder Suiwah Holding Sdn Bhd earlier this year.

“One of our resolutions was that we would not go ahead with the SCR if we received 10 per cent votes against the exercise. However we received less than two per cent votes against the exercise,” he said.

In its filing with Bursa Malaysia in January 25, SCB said it had received a letter from Suiwah Holdings and parties acting in concert requesting to undertake an SCR and repayment exercise.

Suiwah founder and managing director Datuk Hwang Thean Long, the ultimate offeror for the exercise, together with the parties acting in concert, collectively hold a 30.91 per cent stake in the group.

Suiwah Holdings holds a 20.97 per cent stake, while Thean Long, the ultimate offeror in the privatisation, personally holds 7.76 per cent.

The parties acting in concert are Thean Long’s wife Datin Cheah Gaik Huang with 0.05 per cent and their daughter Hwang Siew Peng (0.86 per cent) and son Hwang Shin Hung (1.15 per cent), who are executive directors of Suiwah and Suiwah Supermarket Sdn Bhd (0.12 per cent).

The SCR cash amount represents a premium of 23.35 to 38.61 per cent above the closing price of Suiwah shares.

During the EGM, Jen addressed the Minority Shareholder Watchdog Group’s concerns on issues of fair value, breakdown of property, plant and equipment and why firm did not consider raising funds from capital markets to expand the business.