KUALA LUMPUR: Binaik Equity Bhd has agreed to major shareholder Yeo Brothers Sdn Bhd’s proposed selective capital repayment (SCR) of 75 sen per share or RM18.79 million.

The company said on April 22 upon completion of the proposed SCR, Binaik would be 100% owned by Yeo Brothers. The company would then be delisted.

At 75 sen, this was 23% or 14 sen above the last closing price of 61 sen on Monday. Trading in Binaik shares was suspended for two days and would resume on April 23.

Binaik said the SCR would be for all the shareholders except Yeo Brothers and persons acting in concert, who jointly held 72.89 million shares or 74.41%.

As at April 20, Binaik’s paid-up share capital was RM73.47 million, comprising of 97.96 million shares (excluding treasury shares). The par value of the shares is 75 sen.

The issued and paid-up share capital of Binaik would be reduced by cancelling the shares held by all non-interested shareholders, resulting in the reduction of the paid-up share capital of Binaik of RM18.79 million comprising of 25.06 million Binaik shares.

“The proposed SCR will be funded via internally generated funds, borrowings and/or an advance from Yeo Brothers to Binaik,” it said.

Binaik said the SCR enabled non-interested shareholders to realise their investments in Binaik at a premium above the market price.

It also said average daily trading volume of Binaik shares for the past three years up to April 20 was about 37,000 shares, or only 0.15% of Binaik's current public shareholding spread of 25.06 million shares, indicating a thin trading volume for Binaik shares.