Kayin raises Selangor Properties privatisation offer to RM6 per share

KUALA LUMPUR (Dec 18): Selangor Properties Bhd’s Wen family has revised its privatisation offer to RM6 from RM5.70 per share previously.

In a filing with Bursa Malaysia yesterday, CIMB Investment Bank said the Wen family, via their vehicle Kayin Holdings Sdn Bhd, has revised the proposed selective capital reduction (SCR) and repayment offer price from RM5.70 to RM6.

Consequently, the issued share capital of Selangor Properties will be reduced by up to RM655 million pursuant to the proposed SCR.

As a result of the revised offer price, the capital reduction is still higher than the existing issued share capital of Selangor Properties. Hence, a bonus issue is still proposed to be undertaken by Selangor Properties.

Selangor Properties said in October that the proposed SCR is expected to be funded by the company’s internally generated funds and bank facilities obtained by the company.

The group’s balance sheet as at July 31 shows that its cash balance stood at RM264.2 million and financial assets (including fixed income investment funds) was at RM702.9 million. Its net asset per share was at RM7.19.

Selangor Properties owns several plots of prime land and office buildings in Damansara Heights and Bukit Tunku. Among its priciest properties is the 25-storey Menara Millennium in Damansara Heights, which fetched a book value of RM361.93 million, according to its annual report for the financial year ended Oct 31, 2017.

Selangor Properties shares rose 19 sen or 3.56% to close at RM5.52 yesterday, with a market capitalisation of RM1.9 billion.

This article first appeared in The Edge Financial Daily, on Dec 18, 2018.

Click here for more property stories.