KUALA LUMPUR (Feb 23): Boustead Heavy Industries Corporation Bhd (KL:BHIC) has appointed DWA Advisory Sdn Bhd to act as the independent adviser for parent Boustead Holdings Bhd (BHB) plan to privatise the company via a selective capital reduction and repayment exercise at 48 sen per share.

Boustead Holdings holds a 72.38% interest in BHIC.

The offer price represents a 54.84% premium to BHIC’s last traded price of 31 sen on Feb 6, and a 71.18% premium to its six-month volume-weighted average price of 28.04 sen. 

BHB intends to delist BHIC from Bursa Malaysia once the exercise is completed. The board of directors of BHIC has until March 3 to decide whether to implement the proposed privatisation.

The proposed exercise is subject to approval from the Securities Commission Malaysia, disinterested shareholders at an extraordinary general meeting (EGM) and the High Court’s confirmation of the capital reduction.

The exercise requires approval from at least 75% in value of disinterested shareholders at the EGM and must not be opposed by more than 10% of them.

The stock closed half a sen higher or 1.11% at 45.5 sen a share, valuing the company at RM256.75 million.

According to AskEdge data, the company’s price to net asset value ratio is 2.7 times, the highest in recent years.