Hunza's major shareholder plans privatisation via SCR

PETALING JAYA: The major shareholder of Hunza Properties Bhd has proposed to take the Penang-based property company private at RM2.50 a share.
Hunza said on Friday the board had received a letter from Khor Teng Tong Holdings Sdn Bhd (KTTH), which owns 32.30%, to undertake a selective capital reduction (SCR) and repayment exercise under the privatisation exercise.
"The board, save for the interested directors will deliberate on the proposed SCR and decide on the next course of action. Accordingly, a further announcement will be made in due course," it said.
KTTH and parties acting in concert in the corporate exercise own a combined 59% stake or 132.796 million shares.
Under the corporate exercise, Hunza will undertake the SCR and repayment exercise to all shareholders except the non-entitled shareholders who own a combined 41% or 92.289 million shares.
The entitled shareholders will receive a total capital repayment of RM230.72 million, which represents RM2.50 cash for each existing Hunza share.
The proposed SCR will reduce Hunza's share capital by RM230.72 million by cancelling out 230.72 million shares.
Since the number of Hunza shares to be cancelled is higher than its existing share capital, Hunza is proposing a bonus issue to increase its share capital up to a level which is sufficient for the capital reduction.