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Saturday, May 17, 2014

Chung & Tee Ventures to take Delloyd Ventures private

Source: http://www.thestar.com.my/Business/Business-News/2014/05/16/Chung-Tee-Ventures-to-take-Delloyd-Ventures-private/

KUALA LUMPUR: Delloyd Ventures Bhd's major shareholders, owning 63.58% stake, have proposed to take the company private via a capital repayment of RM4.80 a share.
The company said on Friday it had received a letter from its major shareholderChung & Tee Ventures Sdn. Bhd. requesting it to undertake a selective capital reduction and repayment exercise.
"The non-interested directors of Delloyd will deliberate on the said matter and decide on the next course of action. Accordingly, a further announcement will be made in due course," it said.
Chung and Tee Ventures (which owns 34.24%) and parties acting in concert own a total of 61.41 million shares or 63.58% stake.
The group said the proposed exercise offers an opportunity for its shareholders to realise their investments in the company at a premium to the current and historical market price of the company’s shares.
This is because the group’s shares had been relatively illiquid, said Delloyd.
It said the average daily volume for the past twelve months up to May 14 were only 43,817 shares, or 0.12% of shares held by entitled shareholders, and 0.05% of the company’s voting share capital.
Commenting on its operations, the group said its automotive segment is becoming increasingly competitive as the group’s revenue, operating profit and operating profit margins have been declining in recent years.
“Profitability of the group’s auto segment is vulnerable to the tightening of bank lending guidelines for hire-purchase of cars as well as selling price pressures in light of the liberalisation of the Malaysian and regional automotive markets,” it said.
Meanwhile, its plantations segment continued to face challenges given prevailing fluctuations in foreign rates of the rupiah and increasing cost of production.

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