Yeo Hiap Seng Singapore to take Malaysia subsidiary private

KUALA LUMPUR: Yeoh Hiap Seng (Singapore) Pte Ltd, which owns 61.15% of Yeo Hiap Seng (Malaysia) Bhd, has proposed to take the latter private and offering RM3.60 cash a share.
YHS
Malaysia said on Wednesday the parent company had proposed it undertake
a selective capital reduction (SCR) and repayment exercise of
RM213.57mil.
"The entitled shareholders will receive a total
capital repayment of RM213.57mil (excluding treasury shares), which
represents a cash amount of RM3.60 for each YHS Malaysia share held on
the entitlement date," it said.
At RM3.60, this was a premium of 44 sen or 13.92% above the closing price of RM3.16 on Monday.
Under
the corporate exercise YHS Singapore would waive its entitlements to
the repayment of capital pursuant to the proposed selective capital
reduction.
As at Wednesday, YHS Singapore held 93.37 million YHS
Malaysia shares or 61.15%. YHS Malaysia's paid-up share capital was
RM152.70mil, comprising of 152.70 million RM1 shares.
The
corporate exercise would involve cancelling YHS Malaysia shares on the
basis of one YHS Malaysia share to be cancelled for every RM1 paid by
YHS Malaysia to entitled shareholders as capital repayment.
As
the exercise would involve 213.57 million shares to be cancelled, which
was higher than the existing paid-up, a bonus issue of up to 61.87
million shares might be proposed so that the paid-up would be
sufficient for the capital reduction.
Upon completion of the
proposed SCR, YHS Singapore would own 100% equity interest in YHS
Malaysia and there were no plans to maintain its listing status.
"The
proposed SCR will be funded by way of a loan from YHS Singapore and/or
financing facilities to be obtained by YHS Malaysia from financial
institution(s)," it said.
The proposed cash amount represented a
price-to-earnings ratio of 22.50 times based on the basic earnings per
share of YHS Malaysia group of 16 sen as at December 2011.

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rm3.60 T/O price 44 sen premium or 14%

RM3.16 last traded

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tmr sure boh bak liao... [You must be registered and logged in to see this image.]

eh you dont say still got 35 sen upside, you discount the opening maybe 20+ sen