Brem spikes past RM1 for first time in about four years on privatisation announcement

KUALA LUMPUR (Nov 29): Brem Holding Bhd's share price on Monday (Nov 29) spiked as much as 30.34% past RM1 for the first time in about four years since January 2018 after the builder and property developer announced last Friday it had received a letter from major shareholders Brem Properties Sdn Bhd and Tan Sri Khoo Chai Kaa on their intention to privatise Brem Holding via selective capital reduction and repayment (SCR).

The proposed SCR entails the selective capital reduction and corresponding capital repayment of a cash amount at RM1.20 a share in Brem Holding, according to a filing with Bursa Malaysia.

At the time of writing, Brem Holding’s share price had pared gains at RM1.15, with 658,300 shares traded, after spiking as much as 27 sen or 30.34% to RM1.16.

On another note, the offer price of RM1.20 to privatise Brem Holding values the company at about RM394.78 million based on its 328.98 million issued shares.

Brem Holding’s latest-reported net assets per share stood at RM1.80, according to the company’s latest quarterly financial report.

According to the privatisation notice attached to Brem Holding’s Bursa filing, Brem Properties, Khoo and the persons acting in concert collectively own an approximately 75% stake in Brem Holding.

Brem Properties and Khoo said they do not intend to maintain the listing status of Brem Holding on Bursa’s Main Market upon completion of the SCR.

Brem Holding’s share trade resumed on Monday following a suspension since 2.30pm last Friday in conjunction with the privatisation announcement.

Prior to the suspension, its share price settled up 10 sen or 12.66% at 89 sen at the noon break last Friday.

Before Monday, the counter last spiked past RM1 on Jan 26, 2018, when it closed at RM1.