KUALA LUMPUR (Dec 7): MTD ACPI Engineering Bhd has received an offer from its controlling shareholder MTD Capital Bhd to take the construction engineering firm private via a selective capital reduction and repayment exercise (SCR).

MTD Capital executive chairman Tan Sri Dr Nik Hussain Abdul Rahman indirectly holds the entire equity interest in the group and is deemed to be the ultimate offeror for the proposed SCR, MTD ACPI said in a filing today.

The proposed SCR involves MTD ACPI undertaking a selective capital reduction and a corresponding capital repayment to all shareholders of the company on an entitlement date to be determined later.

As at the last practical date, the share capital of the company was RM339.77 million, comprising 231.63 million shares, while entitled shareholders held 74.43 million shares.

MTD ACPI said the entitled shareholders will receive a total capital repayment of RM20.84 million, which represents a cash amount of 28 sen per share.

The share capital will then be reduced by RM20.84 million by way of cancellation of 74.43 million shares held by entitled shareholders. In conjunction with this, all 637,000 treasury shares held by the company will also be cancelled.

MTD ACPI said the SCR is being undertaken in view of the company's poor financial condition, having recorded net losses over the past two financial years.

It added that the uncertainties surrounding the Covid-19 pandemic will make it challenging for the construction and manufacturing industries and likely have a prolonged impact on the group.