Update Ireka major shareholders to privatise builder

by **Cals** Sat 15 Jun 2013, 10:50

Update Ireka major shareholders to privatise builder

Business & Markets 2013

Written by Chong Jin Hun of theedgemalaysia.com

Friday, 14 June 2013 18:38

KUALA LUMPUR (June 14): Ireka Corp Bhd's major shareholders plan to privatise and delist the CONSTRUCTION [] firm via a selective capital reduction (SCR) and cash repayment exercise.
In a statement to the exchange today, Ireka said its major shareholders who already own 64.7% in the firm, plans to cancel the remaining 35.3% stake they do not own.
Major shareholders via Olymvest Sdn Bhd plans to privatise Ireka as the latter's shares "have been thinly traded" and the stock has been transacted below its par value for the past three years.
Upon completion of the SCR, the acquirers will own 100% of Ireka. Olymvest will subsequently make a cash repayment of 90 sen a share to minority shareholders of the Ireka.
"The offer will remain open for the board’s acceptance until 5pm on June 28, 2013.
"The non-interested directors will deliberate on the offer and upon consultation with an independent adviser to be appointed will decide on the next course of action," Ireka said.
Trading of Ireka shares was suspended today to facilitate the announcement of the proposed privatisation.
Ireka shares were last traded at 68 sen yesterday (13 June). This compares to the company’s latest reported book value of RM1.60 a share.
The firm reported a net loss of RM37.42 million in financial year ended March 31, 2013 compared to a net profit of RM11.1 million a year earlier.