KUALA LUMPUR (Jan 9): MPHB Capital Bhd (KL:MPHBCAP), which is involved in the credit services and property businesses, said that its shares will be suspended, effective from Jan 22, to facilitate the company’s selective capital reduction before it is taken private.
The selective capital reduction involves a cash distribution of RM1.70 for each share held as at Jan 23, the Main Market-listed company said in a filing on Thursday. The cash is entitled to all shareholders except for Casi Management Sdn Bhd and MWE Holdings Sdn Bhd.
MPHB also announced that the trading of its shares on the Main Market will continue to be suspended until the company is delisted after the completion of the selective capital reduction.
“MPHB shares will no longer be traded on the Main Market of Bursa Securities following its suspension on Wednesday, Jan 22, 2025,” it said.
MPHB in May last year announced that its controlling shareholder and chairman Tan Sri Surin Upatkoon planned to take MPHB private through a selective capital reduction involving 440.07 million shares, or a 62.68% stake, totalling RM748.11 million.
Both Casi and MWE are private vehicles of Upatkoon, with Casi owning a 32.92% stake and MWE a 4.4% stake.
Since the capital repayment of RM748.11 million exceeds MPHB's share capital of RM725.09 million, the company proposes a bonus issue of 146.06 million shares by way of capitalising RM123.02 million from the group's retained earnings.
The bonus shares will not be credited to entitled shareholders, and will be cancelled under the proposed capital reduction and repayment to be undertaken subsequently.
Shares of MPHB closed up one sen or 0.6% at RM1.69 on Thursday, valuing the company at RM1.21 billion.