KUALA LUMPUR: Ekowood International Bhd said its board of directors had agreed to a proposal from parent TSH Resources Bhd to take it private via a members’ scheme of arrangement.

In a filing with Bursa Malaysia yesterday, Ekowood said the board will present the scheme to the scheme shareholders for approval.

TSH currently holds 113.32 million shares or a 67.46% stake in Ekowood.

The persons acting in concert with TSH collectively hold another 10.81 million shares or a 6.44% stake in Ekowood. They include Datuk Dr Kelvin Tan Aik Pen, chairman of both TSH and Ekowood, and Datuk Tan Aik Sim, group managing director of both companies.

On Nov 30, loss-making Ekowood received a proposal from TSH to take it private via a members’ scheme of arrangement. The proposed privatisation involves the acquisition by TSH of all Ekowood shares not owned by it and the transfer of the scheme shares from the scheme shareholders to TSH and/or its nominee(s).

TSH will pay 40 sen for each scheme share, which will be satisfied via the issuance of new shares of 50 sen each in TSH at an issue price of RM1.92.

Based on 54.68 million Ekowood shares held by the scheme shareholders as at the latest practicable date, representing approximately 32.54% of the issued share capital of Ekowood, the total consideration for the proposed privatisation is RM21.87 million, which will be satisfied via the issuance of up to 11.39 million new TSH shares.

The proposed privatisation is expected to be completed in the second quarter of 2017. Upon completion, Ekowood will become a wholly-owned subsidiary of TSH.

TSH shares closed unchanged at RM1.88 yesterday, bringing it a market capitalisation of RM2.55 billion, while Ekowood shares settled at 35.5 sen, down one sen or 2.74%, with a market cap of RM59.64 million.