Malaysian Privatisation:UDA Holdings Bhd Proposes Scheme To Take It Private

Recently,in The Star reported that:-
“ UDA Holdings Bhd has proposed to become a private entity,with its shareholders receiving a capital repayment of RM3 per share under a proposed selective capital repayment (SCR) exercise expected to be funded by Khazanah Nasional Bhd.
UDA said in a statement yesterday the capital repayment of RM3 cash per share represented a premium of about 28.21%,39.53% and 36.36% to the June 26 closing price of its shares,and the five-day and three-month weighted average market price of its shares up to and including June 26 of RM2.34,RM2.15 and RM2.20 respectively. “
Salient points:

• Khazanah National Bhd ( Malaysian government investment arm) presenting owns 50.1% of UDA Holdings Bhd,The other significant shareholder of UDA is Malaysian Resources Corp Bhd (MRCB),with 24.9% equity;
• The exercise will cost Khazanah about RM529mil cash if all the rest of the 50-odd per cent of shareholders accept the offer;
• Offered shareholders the opportunity to realise their investments in the company at an attractive premium above the market price.

Incidentally,the rationale given for the privatization is as follows:
Upon completion of the proposed scheme,Khazanah will own 100% interest in UDA. UDA said it had proposed the exercise as it felt the company’s corporate social responsibility in the context of the bumiputra agenda,going forward,would be best served as a privately held entity.

How I wish that I have not missed this rationale in my earlier articles on going private! 

• PUBLIC LISTED COMPANIES,NSTP &SARAWAK ENERGY BHD GOING PRIVATE
• Malaysian Privatization News:MMC To Take Malakoff Private In Record Deal
• Privatisation:From Listed To Private
• PN17 Company’s FCW Proposes 5-into-1 Capital Reduction
• Landmarks Proposes Placement
• Bonia Proposes Main Board Transfer,1-for-2 bonus,Share Split
• Going Private – An Increasing Trend