Lingui and associate company Glenealy are next in line

PETALING JAYA: Samling Strategic Corp Sdn Bhd (SSC) is proposing to privatise unit Samling Global Ltd (SGL) and in turn to privatise timber firm Lingui Developments Bhd and associate company Glenealy Plantations (Malaya) Bhd.

Lingui and Glenealy said in separate statements to Bursa Malaysia yesterday that the privatisation exercise would be conditional, among other things, upon the approval of the independent shareholders of SGL.

SSC’s approach letter was addressed to SGL, with copies made to Lingui and Glenealy.

“If a formal offer in respect of the proposal is put forward, SSC has indicated that it expects to propose an offer price of RM1.63 per share in respect of the Lingui privatisation and RM7.50 per share in respect of the Glenealy privatisation,” Lingui said.

It also said that the offer prices were indicative only, was non-binding and may be subject to variation. “The board will deliberate and decide on the next course of action once the matters to be satisfied prior to the possible SGL privatisation have been so satisfied and will make a further announcement to inform the market in compliance with all applicable rules and regulations as and when appropriate or required.”

Lingui and Glenealy are controlled by the diversified Miri-based Samling Group headed by Tan Sri Yaw Teck Seng.

Lingui posted a net loss of RM28.1mil for the first quarter ended Sept 30, compared with a net profit of RM39mil a year earlier. Revenue was up 19% year-on-year to RM435mil.

Glenealy, which is 36.4% owned by Lingui, targets to expand its planted areas by at least 3,000ha in the current financial year ending June 30, 2012.

Trading in shares of Lingui and Glenealy Plantations has been suspended since Jan 20 at the companies’ request. Lingui’s last traded price was RM1.36 while Glenealy’s was RM6.55.

from thestar.com.my