KUALA LUMPUR, June 3 — Tan Sri Syed Mokhtar Al-Bukhary has offered to take MMC Corporation Bhd private by way of selective capital reduction (SCR) for RM2.94 billion or RM2 per share for each ordinary share and repayment exercise.

In a Bursa Malaysia filing today, MMC displayed the offer letter from Seaport Terminal (Johore) Sdn Bhd (STJSB), which holds 51.76 per cent stake or 1.58 billion shares in MMC.

Syed Mokhtar holds the entire equity interest in STJSB via Indra Cita Sdn Bhd.

The exercise is for the remaining 1.46 billion shares or 48.24 per cent STJSB does not own. It will fork out RM2.94 billion or RM2 per share for it.

"Upon the approval and successful implementation of the proposed SCR, the share capital of MMC will be reduced by RM2.93 billion by way of cancellation of RM1.46 billion MMC shares held by the entitled shareholders at the SCR offer price,” it said.

However, in view that the capital reduction of the proposed SCR is higher than the existing issued share capital of MMC of RM2.34 billion comprising 3.04 billion ordinary shares and to facilitate the transaction, a bonus issue is proposed to be undertaken by MMC.

It will then increase the share capital of MMC up to a level sufficient to carry out the proposed SCR.

The proposed SCR provides greater flexibility to MMC in managing and developing its existing businesses whilst exploring opportunities without regulatory restrictions and compliance costs associated with its listing status, as it considers to be suitable to improve the utilisation of resources, prospects, and future growth of the MMC Group in order to remain competitive. — Bernama