Zecon Bhd's major shareholders have proposed to take the construction company private via a selective capital reduction (SCR) and repayment exercise. Zecon said it had received a letter yesterday proposing the privatisation exercise from its major shareholders via its group managing director Datuk Zainal Abidin Ahmad and Dalwa Capital Sdn Bhd together with parties acting in concert. The two non-entitled shareholders are Tan Sri Tommy Bugo and Zainurin Ahmad, who are the group's director and deputy managing director respectively.
- Under the proposed SCR, all entitled shareholders will receive a capital repayment of RM35.8m or 80 sen per Zecon share held. This will result in the reduction of Zecon's capital to 74.4m shares from 119.1m, by way of cancelling a total 44.7m shares.
- The offer price of 80 sen per share represents a 18% premium to the stock's closing price of 68 sen yesterday, and a 33% discount to its unaudited net asset per share of RM1.20 as at March 31, 2013. (Sun)