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KUALA LUMPUR: Selangor Properties Bhd 
shares surged in early trade Friday after its shareholder Kayin Holdings Sdn Bhd proposed to take the company private.
The property counter hit limit up, jumping 29.8%, or RM1.21 to RM5.27, making it the top gainer on Bursa Malaysia.
Kayin Holdings, the vehicle of the Wen family, is looking to privatise SPB at RM5.70 per share through a selective capital reduction and repayment exercise.
The cash repayment will amount to RM622.27mil, which represents a premium of 40.39% to the share’s closing price on the latest practicable date, and a 19.62% premium over the one-year volume-weighted average market price.
According to Kayin, which holds a 68.2% stake in SPB, a glut in the property market is expected to limit the group’s development activities over the near to medium term.
Kayin said the decision to privatise the group via the capital reduction and repayment exercise would provide the group with greater flexibility to manage and develop its businesses and undertake corporate exercises which may otherwise require lengthy shareholder and regulatory approvals.
The proposed share capital reduction is expected to be funded via the company’s internally generated funds and/or bank facilities to be obtained by SPB.
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