KUALA LUMPUR (April 2): UEM Group Bhd is set to take UEM Edgenta Bhd (KL:EDGENTA) private after securing shareholder approval, paving the way for full ownership and delisting from Bursa Malaysia’s Main Market by early July.
UEM Edgenta shareholders approved the proposal at an extraordinary general meeting on Thursday, with 97.09% of disinterested shares voting in favour, according to UEM Edgenta in a bourse filing.
Votes against the resolution stood at 1.33%, below the 10% threshold required to block the proposal under Bursa’s listing requirements.
The approval enables UEM Group to increase its stake from 69.14% to 100%.
UEM Group will acquire the remaining 30.86% stake, equivalent to 257 million shares, at RM1.10 per share. The acquisition will involve a total cash repayment of RM282 million to shareholders.
The selective capital reduction will take effect upon lodgement of a High Court order with the Companies Commission of Malaysia.
In a statement, UEM Group said UEM Edgenta is expected to be delisted from the Main Market by early July.
It added that full ownership will allow it to set clearer strategic direction and pursue initiatives to strengthen UEM Edgenta’s long-term prospects as the entity faced subdued financial performance and challenging market conditions.
Shares in UEM Edgenta were last taded at RM1.08, two sen below the RM1.10 privatisation price, valuing the company at RM898.15 million.