Tong Herr To Be Taken Private Via SCR Exercise, Offers RM2.55 Per Share

KUALA LUMPUR, Aug 6 (Bernama) -- Tong Herr Resources Bhd’s major shareholders, Allrich Corp and Richard Holdings Ltd, as the joint offerors, have proposed to take the company private by way of a selective capital reduction and repayment (SCR) exercise.

The company said the joint offerors sent a letter of proposal for the SCR exercise pursuant to Section 16 of the Companies Act 2016.

The joint ultimate offerors are Tsai Hung-Chuan and Tsai Jane-Rong, who hold the entire equity interest in Allrich, alongside Tsai Ming Ti, Tsai Yi Ting, and Tsai Pei Chen, who hold the entire equity interest in Richard Holdings.

As at July 31, 2026, the joint ultimate offerors and the persons acting in concert (PAC) collectively held 114.38 million shares, representing about 74.5 per cent of Tong Herr’s issued shares (excluding treasury shares).

The company said the proposed SCR entails a selective capital reduction and corresponding capital repayment of RM2.55 for each ordinary share held by all shareholders, excluding the joint offerors, the joint ultimate offerors and the PAC.

Meanwhile, the entitled shareholders collectively hold 39.14 million shares, representing 25.50 per cent of the total number of issued shares (excluding treasury shares).

The Penang-based stainless steel fastener manufacturing group said the proposed SCR would provide the non-entitled shareholders greater flexibility in managing and developing the existing business of the group.

“The company can focus on its core growth initiatives and long-term value creation without the need to incur costs and allocate management time and resources to maintain its listing status on the Main Market of Bursa Securities,” it said.

Tong Herr said the proposed SCR also provides an opportunity for the entitled shareholders to exit and realise their investment in the company at a premium over the prevailing market price of the shares.

It added that the company will submit an application to Bursa Securities to delist the company and withdraw its listing status from the official list of Bursa Securities upon completion.

“The payment of the SCR offer price to the entitled shareholders will be made as soon as practicable following the effective date, but in any event within 10 days from the effective date,” it added.

-- BERNAMA