PETALING JAYA: Mintye Bhd’s controlling shareholder Yatee & Sons Sdn Bhd proposes to take the company private through a selective capital reduction (SCR) and repayment exercise of RM1.30 per share.
The SCR offer price represents a premium of 35.42% against its five-day volume-weighted average market price of 96 sen per share.
Trading in Mintye shares was suspended from 2.30pm today pending the material announcement. The stock last traded at RM1.00.
Mintye told Bursa Malaysia that it had received a letter from Yatee & Sons requesting the company to undertake the corporate exercise pursuant to Section 116 of the Companies Act 2016.
Yatee & Sons holds a 59.17% stake in Mintye, which has been in the friction material business for more than 40 years.
It said Mintye’s board, save for Yeo Kim Swee and Yeo Kim Soon who are deemed interested in the proposed SCR, will deliberate on the proposal and decide on the next course of action.
The proposed SCR is expected to be funded by the company’s internally generated funds and/or financing facilities to be obtained from financial institutions.
Yatee & Sons said the listing status of Mintye brings minimal benefit to the company and its shareholders.
“The company has not undertaken any fund raising activities from the capital market over the past 15 years. Furthermore, the company is incurring costs the maintain its listing status and to comply with the relevant regulatory requirements as a public listed company.”
It also noted that trading liquidity of Mintye shares has been low, with an average monthly trading volume of 42,000 shares for the past one year up to July 2019.”