PETALING JAYA: Property developer Daiman Development Bhd has received an offer from its major shareholders Tay Kia Hong & Sons Sdn Bhd and Daiman Holdings Sdn Bhd to privatise the group by way of a selective capital reduction and repayment exercise (SCR) at RM3 per share. Daiman Development told Bursa Malaysia that the board (save for the interested directors, namely, Tay Thiam Song, Tay Tian Liang, Tay Thiam Yew and Tay Hui Fong) will deliberate on the proposed SCR and decide on the next course of action. "Accordingly, a further announcement will be made in due course after the board's deliberation." The SCR involves a total capital repayment of RM295.48 million or RM3 per share, which represents a 38.3% premium to its last traded price of RM2.17. Trading in the stock was suspended today pending the material announcement. Daiman Development noted that the SCR offer price will not be reduced by the proposed 5 sen dividend in respect of the financial year ended June 30, 2018. Given that the capital reduction is higher than the group's existing issued share capital, a bonus issue is proposed to increase its share capital up to a level which is sufficient for the capital reduction to facilitate the proposed SCR. On the rationale for the proposed SCR, Daiman Development said the group may be required to defer its property launches and that the gestation period for its property development projects would be longer. "As a result, the carrying cost for the group could potentially be higher and there is no certainty that the company can continue declaring and paying consistent dividends like those in the past," it said. In addition, the group said the trading liquidity of its shares has been very low with an average daily trading volume of 32,218 for the past three years.