KUALA LUMPUR (April 7): MBf Corp Bhd (MBfCorp), which was delisted from Bursa Malaysia on Aug 6, 2007, said its controlling shareholder Leisure Holidays Holdings Sdn Bhd (LHHSB) has proposed to the board to undertake selective capital reduction (SCR) and repayment exercise to take over the remaining stakes in the company.   
 
Incorporated on April 1, 2002, MBfCorp is an investment holding company. Through its subsidiaries, the company operates in property development, leisure and timeshare business. It was delisted after not having the adequate level of financial condition to warrant continued listing on the Bursa Securities

LHHSB is the largest shareholder of MBf Corp, holding a 39.49% stake in the company.
 
The SCR entails a capital repayment of 9.5 sen per share in MBfCorp for all shareholders, except LHHSB.  As such, the entitled shareholders representing 60.51% (170.65 million shares) will receive a total capital repayment of RM16.21 million.
 
Upon completion of the proposed SCR, LHHSB will collectively hold the remaining 111.39 million shares in MBfCorp that are not cancelled, representing the entire equity share capital in MBfCorp.   

The proposed SCR is expected to be funded by way of an advance from the offeror.  

Puan Sri Ling Mah Lee @ Ling Lee Hung is the controlling shareholder of LHHSB, with a 99.99% stake in the company. Her sons Datuk Loy Teik Ngan and Teik Inn are also major shareholders of LHHSB by virtue of their indirect interest through their mother.
 
Teik Ngan is the managing director and chief executive director of MBfCorp, while Teik Inn is the company’s director.
 
Notably, Teik Ngan is currently a group executive chairman of a private education institution, Taylor Education Group.  

His late father Tan Sri Loy Hean Heong, is a founder of MBf Group, one of the largest conglomerates in Malaysia at that time.