The Board of Directors of Pelangi ("Board") wishes to announce that the Company has today received a letter from its major shareholders, Datuk Sum Kown Cheek and Datin Lai Swee Chiung (collectively, the “Non-Entitled Shareholders”), notifying the Board of the Non-Entitled Shareholders' intention to privatise Pelangi by way of a selective capital reduction and repayment exercise pursuant to Section 116 of the Companies Act 2016 ("SCR Offer Letter").
The Proposed SCR entails a selective capital reduction and a corresponding capital repayment of a cash amount of RM0.365 per ordinary share in Pelangi held by all the shareholders of Pelangi (other than the Non-Entitled Shareholders), whose names appear in the Record of Depositors of Pelangi as at the close of business on an entitlement date to be determined and announced later by the Board.
The Board, save for the interested directors, will deliberate on the Proposed SCR and decide on the next course of action. Accordingly, a further announcement will be made in due course after the deliberation by the Board, save for the interested directors.
Please refer to the SCR Offer Letter attached herewith for further details on the Proposed SCR.
This announcement is dated 2 October 2020.