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! 

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