The 'blue monster' to go private

The executive chairman and his sons propose to take Mamee-Double Decker private in a deal valued at RM179.81 million

KUALA LUMPUR: Datuk Pang Chin Hin and his sons are proposing to take Mamee-Double Decker (M) Bhd, the country's largest home-grown food & beverage manufacturing company, private in a deal valued at RM179.81 million.
Pang, the executive chairman of Mamee, and his sons Datuk Pang Tee Chew and Datuk Pang Tee Nam collectively own more than 45 per cent of the company.

The trio, and other shareholders who in total own 71.9 per cent of Mamee collectively are offering the remaining stakeholders in the company RM4.39 a share.

The offer is a premium over Mamee's book value of RM1.71 as at end December 31, and over its last traded price of RM3.60 a share.

The parties acting in concert, also said that they have no intention of maintaing the listing status of Mamee in the event the minority shareholders decide to sell out.

Among reasons cited for the privatisation move was because the group may need to incur higher bank borrowings due to high raw material prices (huh,the cash flow and balance sheet still strong, why it is an issue..nvm) and this may eventually affect the dividend payment capability of Mamee and also because Mamee shares have been thinly traded.

OSK Investment Bank Bhd and OCBC Advisers (Malaysia) Sdn Bhd are the principal adviser and the financial ddviser respectively for the proposed capital repayment exercise.

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The company that im in love with and willing to hold for a very long time...now being privatized...sigh. =( .nonetheless i'm still happy for the fair premium offer.

Now, gotta do extra work to find other companies that can offer the same growth potential.