Update Zecon major shareholders to privatise, delist firm

Update Zecon major shareholders to privatise, delist firm
Business & Markets 2013
Written by Kamarul Anwar of theedgemalaysia.com
Monday, 15 July 2013 19:10

KUALA LUMPUR (July 15): ZECON BHD []’s major shareholders are proposing to take the CONSTRUCTION [] firm private via a selective capital reduction and repayment exercise.

The planned privatisation comes amid Zecon's weaker financials and thinly-traded shares, the firm said in a filing with Bursa Malaysia.

Zecon said Dawla Capital Sdn Bhd besides Zecon managing director Datuk Haji Zainal Abidin Haji Ahmad, independent non-executive chairman Tan Sri Datuk Amar Dr Tommy Bugo, and deputy managing director Haji Zainurin Haji Ahmad intends to delist Zecon after the privatising the firm.

According to Zecon, its minority shareholders will receive a total cash payment of RM35.78 million or 80 sen per share under the
selective capital reduction and repayment.

The capital reduction involves the cancellation of 44.72 milion shares representing a 37.5% stake in Zecon held by minority shareholders.

The capital repayment of 80 sen a share represents a 22 sen or 37.93% premium to the closing share price of Zecon on July 11 and a 60% premium to the stock's one-year volume weighted average price of 50 sen.

Meanwhile, Zecon said all entitled holders of its 2007/2017 warrants will also receive a cash payment of five sen per warrant. The follows the acceleration of the outstanding warrants' maturity and cancellation of the units.

The company’s shares closed six sen or 9.68% higher at 68 sen today.

This compares with its latest reported net assets per share of RM1.20.

interesting

more 15 sen upside

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