IREKA REMAINS A MAIN MARKET LISTED COMPANY
Kuala Lumpur, 19 February 2014: At Ireka Corporation Berhad’s (‘Ireka’) EGM today, non-interested shareholders voted against the major shareholders’ proposed offer to take the Company private via a selective capital reduction and repayment exercise (‘SCR’).
Under the proposed SCR, the non-interested shareholders would receive a capital repayment of 90 sen per share, and the Ireka shares will be subsequently de-listed from Bursa Malaysia. The independent advisor, Affin Investment Bank Berhad, is of the view that the proposed SCR is “not fair but reasonable”, and has recommended that the non-interested shareholders accept the SCR. The share price is trading at RM0.875 at the close of the morning session on 19 February 2014.
In June 2013, the major shareholders of Ireka proposed to privatise the Company seeing that the shares had been thinly traded and the market price had been languishing below the par value of RM1.00. This made it impossible for Ireka to undertake any fund raising activities through the capital markets, hence not benefitting from its listed status.
At the time when the proposed SCR was announced, the share price of Ireka was trading at RM0.68. However since the announcement of the proposed SCR eight months ago, Ireka’s shares trading patterns have improved in terms of price and volume, with the share price touching a high of RM1.20 during the period.
The improved performance of Ireka’s share price signifies shareholders’ confidence in the Company’s long term value as a business and as a listed company. The confidence in the Company’s prospects by shareholders is welcomed and shared by the Ireka Board.
In response, Ireka’s Chairman, Tuan Haji Abdullah Yusof said, “Ireka’s major shareholders have always believed in the long-term future of the Company. Based on the results of the EGM, it is reassuring that the shareholders and the public alike believe in the long-term potential of the Company. We will continue to work hard to ensure this confidence is repaid and the Company continues to be successful, building on its 47 years of a solid track record. In the short- to mid-term we will find ways to enhance the capital base of the Company and to work hard to bring the Company back to profitability.”
The Board is keen to move on to the next phase of the Company’s life and to review its business and operations to ensure that it remains competitive and conducive for future growth, especially to expand Ireka’s capital base.
Ireka remains committed to being a truly excellent construction based Company and it is determined to continue to take up the challenge of creating properties that combine great originality and high value, and so make a tangible contribution to society.