Tan Sri Dr Ninian Mogan Lourdenadin
has defended his buyout offer for MBf Holdings Bhd, saying his bid has a good premium and the group will need more funds to expand.
Ninian, who is the group's chief executive, had proposed to take MBf Holdings private via a selective capital reduction and repayment exercise (SCR) and to accelerate the maturity of the MBf Holdings' warrants on January 11.
Under the proposed SCR, minority shareholders will receive a cash amount of 65 sen for each share owned, while warrant holders will receive 5 sen for each warrant.
"We believe the 65 sen offer per share is a good premium as it represents a premium of 23 per cent and 33 per cent over the five-day and three-month volume-weighted average market price of 53 sen and 49 sen," said Ninian
"In order to maintain investor confidence, the major shareholders had to pledge their personal assets to secure an additional standby banking line of up to RM150 million to complement MBf Cards'
available banking facilities," said Ninian
said the privatisation would allow the major shareholders greater flexibility to grow the business as they were prepared to inject capital into the business as and when required.