Weida jumps 12% on privatisation plans

PETALING JAYA: Weida (M) Bhd's shares jumped 25 sen or 12% in morning trade after its major shareholder proposed a plan to privatise the company and delist it from the Main Market of Bursa Malaysia via a selective capital reduction (SCR) and repayment exercise.
At the close of morning trade the stock, which was among the top gainers, stood at RM2.26 with 1.67 million shares changing hands. The group has a market capitalisation of RM301.3 million.
Yesterday, the group said it 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 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.
WMSB and persons acting in concert hold about 33.3% of the issued share capital in the company.