Tong Herr Resources Berhad has received a proposal from its major shareholders to privatise the company through a selective capital reduction and repayment (SCR) exercise.
The group announced that major shareholders Allrich Corp and Richard Holdings Limited, serving as joint offerors, sent a proposal letter notifying the board of their intent to undertake the exercise pursuant to Section 116 of the Companies Act 2016.
The joint ultimate offerors behind the proposal are Tsai, Hung-Chuan and Tsai, Jane-Rong—who hold the entire equity interest in Allrich—alongside Tsai Ming Ti, Tsai Yi Ting, and Tsai Pei Chen, who hold the entire equity interest in Richard Holdings.
Under the proposed SCR, entitled minority shareholders will receive a cash repayment of RM2.55 for each ordinary share held in Tong Herr. The offer excludes the joint offerors, the joint ultimate offerors, and persons acting in concert with them. The official entitlement date will be determined and announced by the board at a later stage.
The board noted that non-interested directors will deliberate on the proposal and determine the company’s next course of action. Interested directors—comprising Tsai Ming Ti, Tsai Yi Ting, Tsai Hung-Chuan, Tsai Pei Chen, and Tsai, Chia-Yen—will abstain from deliberations.
