KDEB's proposed SCR for restructuring

PETALING JAYA: Kumpulan Darul Ehsan Bhd (KDEB) plans to obtain full control of its subsidiary, Kumpulan Hartanah Selangor Bhd (KHSB), to execute its rationalisation and restructuring plans.
KDEB has requested KHSB to undertake a proposed selective capital reduction and repayment exercise (SCR) for all the RM1 shares held by the shareholders of KHSB other than KDEB.
KDEB holds a 96.62% stake in KHSB.
The proposed SCR will result in a cancellation of the entire KHSB shares and a portion of the KHSB shares held by KDEB.
Under the proposed SCR, entitled shareholder will receive a cash payment of RM1.47 per KHSB share. KDEB will waive its entitlement to the capital repayment in favour of the entitled shareholders.
Upon successful completion of the proposed SCR, KDEB will be the sole shareholder of KHSB.
"We propose that the proposed SCR be funded by KHSB by way of a loan from us and financing facilities to be obtained from financial institution," KDEB said in its offer letter yesterday.
KHSB was de-listed from the Main Market of Bursa Securities and removed from the official list of Bursa Securities on Dec 17, 2013.
"Therefore, the proposed SCR would represent an exit plan for the shareholders of KHSB who currently hold shares in a unlisted entity," KDEB said.
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