Quick take: Suiwah shares shoot up 22% on privatisation plan

TheStar Mon, Jan 28, 2019 09:50am - 2 years ago


KUALA LUMPUR: Suiwah Corp Bhd ’s shares surged 22% in early trade Monday after its  major shareholder offered to take the company private by way of a selective capital reduction (SCR) and repayment exercise.


The Penang-based company hit limit up in early trade after surging 22.02%, or 48 sen to RM2.66, its highest since December 2017. It is also the top gainer on Bursa Malaysia. It is currently trading at a PE ratio of 11.36 times.


   

The proposed SCR entails a capital repayment which is equivalent to a cash amount of RM2.80 per ordinary share each in Suiwah held by the entitled shareholders on an entitlement date to be determined later.


The offer price represents a premium of 28.44% against its five-day volume weighted average price of RM2.18.


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% stake in the group.


The offer will remain open for the board’s acceptance until Feb 11, 2019.







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