Weida to present selective capital reduction scheme to shareholders

PETALING JAYA: Weida (M) Bhd has decided to present the proposed selective capital reduction and repayment exercise (SCR) to its shareholders for their consideration.

Its major shareholder Weida Management Sdn Bhd (WMSB) had in last January launched its plan to take Weida private through the SCR exercise for RM2.40 per share.

WMSB has agreed to Weida's request for an extension of the acceptance period to March 12, 2018.

The rationale for the proposed SCR is that it has minimal value-add from listing status; the limited coverage by research analysts and brokers; low liquidity of Weida shares; market price not reflective of underlying value; and presents an opportunity for the entitled shareholders to exit and realise their investment.

The expenses for the exercise is estimated to be RM3.20 million and will be incurred in the next financial year as it is only expected to be completed by the third quarter of 2018.

The proposed SCR is expected to be completed in the third quarter of 2018.

Weida shares closed unchanged at RM2.27 with 43,800 shares done.