PETALING JAYA: Degem Bhd’s major shareholder Legion Master Sdn Bhd (LMSB) has initiated a selective capital reduction (SCR) and repayment exercise with an offer price of RM1.10 in a bid to take the company private.
The total capital repayment amounts to RM24.33 million.
Currently LMSB and the persons acting in concert, including chairman Datuk Hasan M. Taib, collectively hold an 83.1% equity stake in Degem, according to Degem’s filing with the local bourse.
The offer price of RM1.10 represents a premium of 33.9% against its five-day volume-weighted average price of 82.15 sen.
Trading in Degem shares was suspended pending the material announcement. It was last traded at 83 sen.
The proposed SCR is expected to be funded via existing cash balances and internally generated funds.
LMSB opined that the listing status of Degem may have a minimal value to the group and its shareholders as it has not undertaken any equity fundraising through the platform for the last 10 years.
Furthermore, the group bears additional costs in order to comply with the relevant regulatory requirements as a listed company.
source https://www.thesundaily.my/business/legion-master-to-take-degem-private-at-rm1-10-a-share-HA1406081
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