It has also proposed a selective capital reduction (SCR) and repayment exercise.
The company is involved in retail, property development and manufacturing.
Hwang Thean Long, who is the founder and managing director, holds a 7.76% stake in the company and is the ultimate offeror for the exercise.
The SCR will involve a total capital repayment of RM110.7 million to entitled shareholders, which represents a cash repayment of RM2.80 per share.
The cash repayment is at a premium of 62 sen, or 28.44%, against the latest market price of the company at RM2.18.
After the exercise, the share capital of the company will be reduced by RM110.7 million.
The proposed SCR will be funded by internally-generated funds and/or financing facilities to be obtained by SCB.
SCB, in its announcement, said that the main rationale for the exercise was that the shares have been thinly traded for the past two years.
“The average daily volume and the average monthly volume was 14,456 and 160,067 shares for the past two years, which represents 0.07% and 0.77% of SCB’s free float,” the company said.
The company said it had not tapped the equities market for the past 10 years as its funds were either internally generated or by way of financing.
The privatisation of SCB would provide greater flexibility to SCB in managing and developing the existing business of SCB without the regulatory restrictions and the cost of being listed on Bursa Malaysia.
The company also said that one of the reasons for the privatisation was that it had committed capital expenditure to its three lines of businesses and it would require a long gestational period to recoup the investments.
This would hamper its dividend-paying capabilities. As it stood, the company’s dividend had been on a downward trend for the past few years and would be reduced further.