Shares of Malaysian Mosaics Bhd (MMosaics) surged to a record close of RM2.20, up 32 sen, after its major shareholder Gek Poh (Holdings) Sdn Bhd launched its privatisation of the company at RM2.30 per share.
Shares of the mosaic and ceramic tiles maker surged at the start of trade yesterday, opening at RM2.22. There were 1.52 million shares transacted at prices ranging between RM2.18 and RM2.23.
The privatisation will be done via a selective capital repayment exercise whereby all minority shareholders of MMosaics (except for Gek Poh and its subsidiary Pembangunan Melati Sdn Bhd) will receive a cash payment of RM2.30 per share.
The existing paid-up share capital of MMosaics will be reduced by cancelling all the ordinary shares issued and the company will be delisted.
Gek Poh is a private entity controlled by Datuk Seri Panglima Lau Cho Kun, and is the holding company and substantial shareholder of MMosaics, with a stake of 73.07% as at March 10, 2010. Gek Poh is also the holding company of Hap Seng Consolidated Bhd.
MMosaics’ paid-up stood at 78.4 million shares as at Dec 31, 2009. Gek Poh would have to compensate for about 21.1 million shares it does not own, for a total cost of RM48.5 million, to obtain full ownership of the company.
This article appeared in The Edge Financial Daily, July 15, 2010.
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