GuocoLand (Malaysia) Berhad Announces Proposed Privatisation via Selective Capital Reduction

GuocoLand (Malaysia) Berhad (“GLM” or “the Company”) has officially announced a proposed privatisation exercise, which could have significant implications for shareholders and the market value of its shares. This development follows the company’s notification that the privatisation will be carried out through a proposed selective capital reduction and repayment exercise pursuant to Section 116 of the Companies Act, 2016.

Key Details of the Proposed Privatisation

• Privatisation Method: The privatisation will be executed by way of a selective capital reduction and repayment exercise. This means that GLM intends to reduce its share capital and return cash to shareholders, effectively buying out certain shareholders.
• Legal Reference: The exercise is undertaken pursuant to Section 116 of the Companies Act, 2016, which governs procedures for capital reductions and repayment.
• Principal Adviser Appointed: Maybank Investment Bank Berhad (“Maybank IB”) has been appointed as the Principal Adviser for the proposed exercise, indicating a robust and formal approach to the transaction.
• Independent Adviser Appointed: To ensure fairness and transparency, Kenanga Investment Bank Berhad has been appointed as the Independent Adviser. Kenanga will provide comments, opinions, information, and recommendations to the Board (excluding the interested Directors) and to the disinterested shareholders of GLM.
• Interested Directors: The announcement specifically identifies Mr. Cheng Hsing Yao and Mr. Quek Kon Sean as “Interested Directors” who are not participating in the decision-making process regarding the privatisation proposal.

Key Points for Shareholders and Potential Price-Sensitive Information

• Shareholder Impact: The proposed privatisation, if executed, means that minority shareholders may be offered cash in exchange for their shares. This could result in the delisting of GLM from Bursa Malaysia, removing the company’s shares from public trading.
• Price Sensitivity: Such transactions often include a premium to the market price to incentivise shareholders to accept the offer. The exact terms, including the offer price, have not been disclosed yet, but further details are expected in subsequent announcements.
• Board Independence: The appointment of an independent adviser is a critical safeguard for minority shareholders, ensuring that the terms are reviewed independently and that shareholders receive a fair recommendation.
• Regulatory Compliance: The structure and process comply with the Rules on Take-overs, Mergers and Compulsory Acquisitions, increasing transparency and fairness in the transaction.

What Should Shareholders Do?

• Stay Informed: Shareholders are advised to closely monitor future announcements, especially from the Independent Adviser, which will provide a detailed recommendation on the proposed privatisation.
• Assess Offer Terms: Investors should carefully evaluate the terms of the selective capital reduction and repayment once announced, and consider the potential impact on their investment, including the likelihood of the company being privatised and delisted.
• Potential for Share Price Movement: As privatisation proposals often come with a premium, market speculation and trading activity in GLM shares may increase in anticipation of the final offer price and terms.

The announcement was made on 23 February 2026. Given the potential for a cash offer and the prospect of delisting, this is a price-sensitive development and may have a significant effect on the share price of GuocoLand (Malaysia) Berhad.

Disclaimer: This article is for information purposes only and should not be construed as investment advice. Investors should refer to official company announcements and consult with their financial advisers before making any investment decisions related to GuocoLand (Malaysia) Berhad.

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