This article first appeared in The Edge Malaysia Weekly on September 28, 2026 - October 4, 2026

When Japan-based Ajinomoto Co Inc proposed a selective capital repayment scheme to take Ajinomoto Malaysia Bhd (KL:AJI) private at RM20 per share, it might not have expected it to be an uphill task as it would only need to deal with 30.17 million shares.

But it would not have been plain sailing either. The company’s small share base could have worked against the offeror as just a few shareholders collectively holding three million shares could have scuttled the deal.

The Minority Shareholders Watch Group (MSWG) commented that the offer price of RM20 per share does not appropriately value Ajinomoto Malaysia’s business, considering it has cash per share of RM5.72. The independent adviser also deemed the offer price low.

Nevertheless, it stated that the offer was reasonable on the grounds that it was a premium to the market price, the shares are illiquid, Ajinomoto has historically paid low dividends and there was no alternative offer.

Those who felt that Ajinomoto Malaysia’s share price was low often compared the companies to the likes of Nestlé (M) Bhd (KL:NESTLE), Fraser & Neave Holdings Bhd (KL:F&N) and Dutch Lady (M) Bhd (KL:DLADY). But others say this is not a fair comparison.

Ajinomoto Co Inc said Ajinomoto Malaysia should be valued based on its own historical valuation, rather than compared with other consumer goods companies such as Nestlé, which has a higher valuation because of its larger scale and stronger market position.

All this is water under the bridge now. Minority shareholders overwhelmingly voted in favour of the proposed selective capital repayment at last Thursday’s extraordinary general meeting. With shareholders holding 8.5 million shares present, almost 93% voted in favour of the deal, comfortably crossing the threshold of 75%.

The minorities would probably have also taken cognisance that the offer was an opportunity to exit at a premium price, a level that the stock would not reach anytime in the near future. The share price was hovering between RM12 and RM13 before the offer came along.

Ajinomoto Malaysia’s minority shareholders might have also taken a cue from the failed privatisation of DKSH (M) Holdings Bhd (KL:DKSH) in December last year. The stock has not come near the offer price of RM6.15 since the offer lapsed.

Perhaps the minorities, who might be the old timers, have observed that traditional consumer companies are not in vogue now.

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