MWE to present selective capital reduction scheme to shareholders

PETALING JAYA: MWE Holdings Bhd has decided to present its proposal for a selective capital reduction and repayment exercise (SCR) to its shareholders at an EGM for approval.

“The rationale for the proposed SCR as set out in the SCR offer letter is to provide an opportunity for the entitled shareholders to realise their investments in MWE at a premium to the prevailing market price of MWE shares,” it said in a Bursa Malaysia filing.

MWE’s substantial shareholder Pinjaya Sdn Bhd had in March launched a plan to take the company private through the SCR exercise at RM1.75 a share. Under the proposal, a total of RM276.73 million will be paid to entitled shareholders holding 158.13 million shares in MWE.

Pinjaya and parties acting in concert collectively hold 32.62% equity interest in the company. Magnum Bhd chairman Tan Sri Surin Upatkoon – one of the parties acting in concert – is named as the ultimate offeror through his indirect interest held via Pinjaya.

The proposed SCR is expected to be completed in the third quarter of this year.

MWE is involved in textile, telecommunications, property, plantation and other businesses in Malaysia and the Asia Pacific.

MWE slipped one sen or 0.6% to close at RM1.65 last Friday with 113,200 shares traded.