Pinjaya makes second bid for MWE Holdings

SHAH ALAM: MWE Holdings Bhd’s substantial shareholder Pinjaya Sdn Bhd has proposed to take the company private via a selective capital reduction (SCR) and repayment exercise for RM1.75 per share after a failed take over bid in 2015 for the same price tag.

MWE’s share price jumped 33 sen or 25.4% to RM1.63 last Friday after the announcement, with some 3.65 million shares changing hands.

Magnum Bhd chairman Tan Sri Surin Upatkoon is the ultimate offeror through his indirect interest held via Pinjaya. He together with the parties acting in concert collectively hold a 32.62% stake in MWE.

Explaining the rationale for the SCR, Pinjaya said MWE’s share price has declined 8.45% to RM1.30 since Jan 2, 2015. In addition, its share liquidity has also been low.

The offer price represents a 45 sen or 34.6% premium against its five-day volume weighted average price of RM1.30.

Pinjaya said the offer will allow nonentitled shareholders to better manage the company’s capital structure and cash management as well as execute long term strategy’s upon privatisation.

MWE is involved in textile, property and telecommunication businesses. Its operating profit has more than halved to RM11.1 million for nine months ended Dec 31, 2017 from RM23.7 million a year ago, due to lower sales and the slowdown in the US consumer markets.

MWE said the board, save for the interested directors - Surin Upatkoon and Krian Upatkoon, will deliberate on the proposed SCR and a further announcement will be made in due course after the board’s deliberation.