KUALA LUMPUR: Malaysia's MMC Corporation Bhd has received a letter from its controlling shareholder seeking to privatise the company via a selective capital reduction and repayment exercise of 2.94 billion ringgit (US$714 million), a stock exchange filing on Thursday showed.
Under the proposal, MMC's largest shareholder Seaport Terminal (Johore) Sdn Bhd, seeks to cancel all shares held by other shareholders at the offer price of two ringgit per share.
Seaport holds a 51.76per cent stake in the conglomerate that has businesses in utilities, infrastructure as well as port and logistics.
The shareholder also proposed a bonus issue to increase the share capital of MMC to a level sufficient to carry out the capital reduction.
"We confirm that the (proposal) will not fail by reason of insufficient financial capability of MMC and every entitled shareholder will be fully paid in cash," Seaport's letter, also filed to the bourse, said.
The letter said Syed Mokhtar Shah Syed Nor is deemed the ultimate offerer in the proposal through his indirect ownership of Seaport.
MMC said its board will deliberate on the offer and decide on the next course of action.
MMC shares closed 8.33per cent higher at 1.30 ringgit.
(US$1 = 4.1200 ringgit)
(Reporting by Liz Lee; editing by Jason Neely)