KUALA LUMPUR (March 17): Cycle & Carriage Bintang Bhd's (CCB) largest shareholder Jardine Cycle & Carriage Ltd (Jardine CCL) has made a fresh bid to privatise the country's largest dealer of Mercedes-Benz at RM2.40 per share.
The offer is higher by 72 sen or 42.86% to CCB's closing price today of RM1.68, and is higher by between 44.56% and 65.12% to the volume weighted average market price of the shares within a five-day to a one-year period.
Jardine CCL, which owns 59.54 million shares representing a 59.1% stake in CCB, last year failed in its bid to privatise the company, which was attempted via a proposed selective capital reduction and repayment exercise at RM2.20 per share.
The latest bid values CCB at RM241.79 million.
"The offer price is final and the offeror will not revise the offer price," CCB said in a stock exchange filing, adding that Jardine CCL does not intend to maintain CCB's listing status.
The unconditional voluntary takeover offer, which will be satisfied via cash, is at a premium of six sen or 2.56% to CCB's net traded asset of RM2.34 per share. It is also 20 sen or 9.09% higher than its previous offer.
Jardine CCL's previous takeover attempt was thwarted after 13.18% of disinterested shares voted against the selective capital reduction — higher than the 10% allowable threshold.
At the time, the number of disinterested shareholders who voted for the resolution stood at 46.22%, less than the minimum requirement of a simple majority for the resolution to pass. Meanwhile, the 57.94% in terms of value that voted for the resolution was also short of the required 75%.
"While 46.2% in number and 57.9% in value of minority shareholders who attended the 2020 EGM (extraordinary general meeting) voted in favour of the previous offer, they were not able to realise their holdings as the previous offer was not approved," CCB said in its filing.
"As such, this offer is unconditional and will allow all holders who wish to realise their holdings in CCB to do so at a premium to the market price of the shares as at the last trading date," it added.
CCB has been loss-making for two financial years. Net loss in the financial year ended Dec 31, 2020 narrowed to RM12.99 million, from RM39.2 million in the previous year, despite a 5.17% drop in revenue to RM1.08 billion from RM1.14 billion.
Based on its latest traded price of RM1.68, CCB is valued at RM169.25 million.