TH Group Bhd ... Oct 08

Tung Hup Holdings Sdn Bhd, which holds 53.26% of TH Group Bhd, has proposed a capital repayment of 75 sen per TH Group share under its move to take it private.

Tung Hup had proposed a selective capital repayment (SCR) exercise involving a share capital reduction and a corresponding capital repayment to TH Group shareholders other than Tung Hup and parties acting in concert with it.

Under the proposed corporate exercise, Tung Hup had proposed to reduce the paid-up share capital of TH Group of RM386.55mil, comprising of 386.55 million shares of RM1 each, to reduce it to 75 sen each.

The proposed par value reduction would be implemented immediately prior to the implementation of the proposed SCR.

The proposed SCR will be funded via borrowings by TH Group, including the possible issuance of private debt securities. It did not intend to maintain TH Group’s listing status on the Main Board.

The proposed cash amount of 75 sen per share was a premium of 30% or 17.5 sen above TH Group closing share price of 57.5 sen on Sept 25. It was also 46% or 23.7 sen above the five-day volume weighted average price of 51.3 sen up to Sept 25.

The proposed SCR offered an opportunity to other shareholders to realsie their investments in TH Group at an attractive premium above the market price.