GuocoLand (Malaysia) Bhd said a proposal by its controlling shareholder to privatise the company will be presented to shareholders at an extraordinary general meeting (EGM), with the date to be announced later.
In a filing with Bursa Malaysia, the board — excluding interested directors — said it had reviewed the proposal together with advice from the independent adviser, and resolved to table the matter for approval by disinterested shareholders at the upcoming EGM.
The privatisation plan was first announced on Feb 3, when controlling shareholder GLL (Malaysia) Pte Ltd (GLLM) proposed to take the company private via a selective capital reduction and capital repayment at RM1.10 per share. Under the proposal, entitled shareholders holding 244.95 million shares, representing 34.97% of the company, would receive a total capital repayment of about RM269.45 million.
GuocoLand Malaysia is the property arm of Hong Leong Group, controlled by Tan Sri Quek Leng Chan. Quek, who directly holds a 2.78% stake or 19.51 million shares, is expected to receive approximately RM21.46 million under the exercise.
GLLM, a wholly-owned subsidiary of Singapore-listed GuocoLand Ltd, said the privatisation will be funded using GuocoLand Malaysia’s excess cash, with the balance financed through advances or equity injections from GLLM or its parent company.
Upon completion, the 244.95 million shares will be cancelled, reducing the company’s total issued shares to 455.51 million. The remaining shares will be fully owned by GLLM, making GuocoLand Malaysia an indirect wholly-owned subsidiary of GuocoLand Ltd. GLLM currently holds a 65.03% stake in the company.
The controlling shareholder does not intend to maintain GuocoLand Malaysia’s listing status and plans to apply for delisting from Bursa Malaysia once the exercise is completed.
GuocoLand Malaysia shares closed unchanged at RM1.06, giving the company a market capitalisation of about RM742 million.
