KUALA LUMPUR (Nov 26): Brem Holding Bhd's majority shareholders, Brem Properties Sdn Bhd and Tan Sri Khoo Chai Kaa, have proposed to privatise the company via a share capital reduction (SCR).

The SCR entails a selective capital reduction and a corresponding capital repayment of RM1.20 per share for a total capital repayment of RM98.67 million, the group said in a Bursa Malaysia filing on Friday (Nov 26).  

The RM1.20 offer price, it said, represents a 51.9% or 41 sen premium over Brem Holding’s last traded price of 79 sen on Nov 25.

In their offer letter, Brem Properties and Khoo said the SCR was proposed in view of a challenging operating environment, and low trading liquidity of the group's shares.

The exercise also provides an opportunity for the entitled shareholders to realise their holdings at a premium to the market price, they said.

They added that they do not intend to maintain the listing status of Brem Holding.

“Accordingly, we will request Brem Holding to make an application to Bursa Securities to delist Brem Holding and withdraw its listing status from the official list of Bursa Securities upon completion of the proposed SCR,” they said.

Brem Holding shares were last traded 10 sen or 12.66% higher at 89 sen, valuing the group at RM292.79 million based on the company's 328.98 million issued shares.