Weida board to discuss request for selective capital reduction, repayment exercise

PETALING JAYA: Weida (M) Bhd today received a letter from Weida Management Sdn Bhd (WMSB) requesting the company to undertake a selective capital reduction (SCR) and repayment exercise of RM203.17 million or a proposed cash amount of RM2.40 per share in Weida held by all the shareholders of Weida.
“The board, save for the interested directors namely, Datuk Lee Choon Chin and Jee Hon Chong, will deliberate on the proposed SCR and a further announcement will be made in due course after the board’s deliberation,” Weida said in a stock exchange filing.
WMSB and persons acting in concert with it hold 33.29% of Weida. Lee’s 88% stake in WMSB is deemed to be the ultimate offeror.
The proposed SCR is undertaken in view of the minimal value add from listing status, limited coverage by research analysts and brokers, low liquidity of Weida shares and market price not reflective of underlying value and opportunity for the entitled shareholders to exit and realise their investment.
The exercise is expected to be funded via the company’s internally generated funds and bank facility.
The non-entitled shareholders do not intend to maintain the listing status of Weida on the Main Market of Bursa Securities.