By Sharen Kaur
sharen@nstp.com.my
MMC Corp Bhd plans to take Johor's top water concessionaire, Aliran Ihsan Resources Bhd (AIRB), private in a deal valued at RM181.12 million, or RM1.84 a share.
AIRB, which is 62.82 per cent-controlled by MMC, is the third largest supplier of treated water in the country.
Its core subsidiaries are Southern Water Corp Sdn Bhd, Southern Water Technology Sdn Bhd, SouthernWater Engineering Sdn Bhd and Aliran Utara Sdn Bhd.
These companies are involved in the operation, maintenance and management of water treatment plants,rehabilitation of water treatment plants and construction of water works.
The offer price of RM1.84 by MMC is a five per cent premium on AIRB's closing price of RM1.75 last Friday. Based on the closing price, AIRB's market capitalisation was RM463 million.
The securities of both MMC and AIRB were halted from trading yesterday. MMC closed last Friday at RM2.61.
In a filing to Bursa Malaysia yesterday, MMC said it planned to take AIRB private via a selective capitalreduction and repayment exercise.
The plan will result in the reduction of the issued and paid-up share capital of the company from RM264.74million, or 264.7 million shares, to RM83.8 million, or 83.6 million shares.
This is by way of cancelling 181.1 million shares comprising all outstanding AIRB shares amounting to 98.4 million held by the shareholders and 82.7 million held by MMC.
MMC said upon the completion of the exercise, it would hold 83.6 million AIRB shares, representing theentire issued and paid-up capital of the company.
MayBank Investment Bank Bhd is advising MMC on the deal.
MMC Corp group managing director Datuk Hasni Harun said the privatisation exercise was timely, given thenear-term expiry of its main concession/contract, coupled with the illiquidity and lower trading volume ofAIRB shares.
"This move will allow MMC to fully consolidate AIRB's earnings into its accounts and alsoenable both companies to derive more benefits from each other," he said in a statement.
The proposed selective capital reduction and repayment initiative is expected to be completed by the firstquarter of 2013.
Besides AIRB, MMC's other core businesses are Port of Tanjung Pelepas (Malaysia's largest containerterminal), Johor Port (the country's leading multi-purpose port), and Malakoff Group Bhd (the largest local independent power producer)
sharen@nstp.com.my
Published in NST July 10, 2012
AIRB, which is 62.82 per cent-controlled by MMC, is the third largest supplier of treated water in the country.
Its core subsidiaries are Southern Water Corp Sdn Bhd, Southern Water Technology Sdn Bhd, SouthernWater Engineering Sdn Bhd and Aliran Utara Sdn Bhd.
These companies are involved in the operation, maintenance and management of water treatment plants,rehabilitation of water treatment plants and construction of water works.
The offer price of RM1.84 by MMC is a five per cent premium on AIRB's closing price of RM1.75 last Friday. Based on the closing price, AIRB's market capitalisation was RM463 million.
The securities of both MMC and AIRB were halted from trading yesterday. MMC closed last Friday at RM2.61.
In a filing to Bursa Malaysia yesterday, MMC said it planned to take AIRB private via a selective capitalreduction and repayment exercise.
The plan will result in the reduction of the issued and paid-up share capital of the company from RM264.74million, or 264.7 million shares, to RM83.8 million, or 83.6 million shares.
This is by way of cancelling 181.1 million shares comprising all outstanding AIRB shares amounting to 98.4 million held by the shareholders and 82.7 million held by MMC.
MMC said upon the completion of the exercise, it would hold 83.6 million AIRB shares, representing theentire issued and paid-up capital of the company.
MayBank Investment Bank Bhd is advising MMC on the deal.
MMC Corp group managing director Datuk Hasni Harun said the privatisation exercise was timely, given thenear-term expiry of its main concession/contract, coupled with the illiquidity and lower trading volume ofAIRB shares.
"This move will allow MMC to fully consolidate AIRB's earnings into its accounts and alsoenable both companies to derive more benefits from each other," he said in a statement.
The proposed selective capital reduction and repayment initiative is expected to be completed by the firstquarter of 2013.
Besides AIRB, MMC's other core businesses are Port of Tanjung Pelepas (Malaysia's largest containerterminal), Johor Port (the country's leading multi-purpose port), and Malakoff Group Bhd (the largest local independent power producer)
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