KUALA LUMPUR: Atis Corp Bhd's major shareholders and board members have proposed a selective capital repayment exercise that could eventually lead to its delisting from the stock exchange.
In an announcement to Bursa Malaysia on Thursday, Aug 4, the company said shareholders would receive RM1.30 per share under the proposed scheme.
The hardly traded stock's share price closed at RM1.15 on Thursday. The proposed cash amount of RM1.30 was at a premium of some 16% and 18% over the five-day and three-month volume weight average price (VWAP) of Atis shares up to and including Aug 3.
Based on capital repayment of RM1.30, Atis, which owns a 60.8% equity stake in Nadayu Properties Bhd, is valued at 0.6 times price-to-book ratio based on its net assets per share of RM2.16 as at March 31.
The controlling stake in Nadayu Properties, formerly Mutiara Goodyear Development Bhd, is worth RM190.9 million based on on Thursday's closing price of RM1.36.
At the price of RM1.30 per share, Atis shares are pegged at 7.6 times its historical price-earnings ratio based on its audited earnings per share of 17 sen for FY10 ended Dec 31.
The company, which is involved in distribution of electrical and electronic products to industrial players, has been profitable the past five years.
Evolusi Impian, on behalf of Atis' substantial shareholders representing 63.1% stake in the company, said it did not intend to maintain the listing status of Atis upon completion of the selective capital repayment exercise.
"Atis shares have been thinly traded and trading volume has been low. The average daily trading volume of Atis shares during the past 12 months was 79,585 shares, which represents some 0.15% of its total free float," Evolusi said.
"Given the illiquidity and low trading volume of Atis shares, the proposed selective capital repayment represents a better alternative for the entitled shareholders to realise cash for their investments in Atis shares at a premium above the prevailing market prices," it added.
Atis directors Chen Kai Voon, Lim Beng Guan, Sa Chee Peng, Chew Kuan Fah, Lee Kok Keong and Hamidon Abdullah were acting in concert with Evolusi in relation to the proposed exercise, which is expected to be completed by 1Q12, subject to approvals.
Chen, Atis group managing director, is the largest shareholder with a 32.9% stake, followed by Evolusi with 9.9%, Sa (executive director) 4.2%, Lee (executive director) 3.8% and Lim (chairman) with 3.5%.
Upon completion of the exercise, Chen, on behalf of other substantial shareholders would wholly-own Atis and therefore obliged under PN9 to acquire the remaining ordinary shares in Nadayu not held by them.
Chen and the other shareholders said they intended to seek an exemption from the Securities Commission from the obligation to do so under the Takeover Code.
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