Hwang Capital to table proposed SCR

PETALING JAYA: Hwang Capital (Malaysia) Bhd's board of directors have decided to table the proposed selective capital reduction and repayment (SCR) exercise to its shareholders.
In a filing with Bursa Malaysia, the company said the decision was made after deliberating the contents of the SCR offer letter during a meeting held yesterday.
Last month, the company received an offer letter from its majority shareholder Hwang Enterprises Sdn Bhd requesting the company to undertake the SCR exercise, which will result in the company paying out RM260.68 million to shareholders.
The exercise, which values Hwang Capital shares at RM2.94 a piece, will result in Hwang Enterprises taking Hwang Capital private.
In the SCR offer letter, Hwang Enterprises and Hwang Lip Teik (major shareholder and non-executive chairman of Hwang Capital) said the exercise is a continuation of a voluntary general offer last year, which only managed to increase their stake in Hwang Capital to 65.25%.
Trading in Hwang Capital shares has been suspended since September 2016 as the public shareholding spread fell to 7.08%, below the required 10% threshold.
The company expects to fund the proposed SCR with internally generated funds. It said that the proposed SCR would provide a final opportunity for entitled shareholders to exit and realise their investment in Hwang Capital shares.