Ajinomoto (M) Top Gainer On RM20 Apiece Privatisation Offer
KUALA LUMPUR, June 23 (Bernama) -- Food seasoning manufacturer Ajinomoto (M) Bhd (AMB) has emerged as the top gainer in early trading after its shares resumed trading today.
The rally followed the announcement that its parent company, Ajinomoto Co Inc (Ajico), plans to acquire all remaining AMB shares at RM20 per share to take the company private.
AMB's trading was suspended on Monday at the company's request.
As at 10.05 am, shares of AMB rose RM3.72 to RM18.92, with 881,000 shares traded.
In a Bursa Malaysia filing yesterday, AMB said its board of directors received a letter from Ajico today notifying it of the proposal.
The proposed exercise involves a capital repayment of RM603.4 million, or RM20 per share, to entitled shareholders other than Ajico’s, who collectively hold 30.17 million AMB shares or 49.62 per cent of the total AMB shares in issue.
In its letter to the AMB board, Ajico also proposed a bonus issue of 571.1 million AMB shares by way of capitalising RM571.1 million from the company’s retained earnings, which will increase AMB’s issued share capital to a level sufficient to facilitate the proposed selective capital reduction and repayment exercise. Ajico will waive its rights to the bonus issue.
-- BERNAMA