Halim Mazmin To Be Taken Private

Halim Mazmin has announced that it will be taken private by its owner TAN Sri Halim Mohammad.

The following is from a Dow Jones newswire

• Halim Mazmin Major Hldrs Offer 60 Sen/Shr To Take Co Private
  
  KUALA LUMPUR (Dow Jones)--Halim Mazmin Bhd. (7102.KU) Wednesday said its major shareholders have proposed to take the company private by offering 60 sen in cash for each remaining share that they don't already own.
  
  In a statement to the stock exchange, Halim Mazmin said its major shareholders Halim Mohammad and Mazmin Noordin collectively hold a 60.79% stake in the company as of Feb 13.
  
  The proposal is subject to regulatory approvals being obtained, it said, adding that the proposal, if undertaken, is expected to be completed by the third quarter of 2009.

The following is published on Business Times.

• Halim Mazmin to be taken private
  
  By Francis Fernandez Published: 2009/02/19
  
  TAN Sri Halim Mohammad is taking shipping firm Halim Mazmin Bhd (7102) private in a deal valued at around RM70 million, the first time in five years a Malaysian shipowner is exchanging its listing status in favour of private ownership.
  
  Half a decade ago, tycoon T. Ananda Krishnan took Bumi Armada Bhd, one of Malaysia's largest owners and operators of offshore support vessels, private. (comment: I beg to differ on Bumi Armada's privatisation. It was totally different because Bumi Armada was a listed subsidiary and it was taken in a rather crude manner in a deal that utterly short-changed the minority shareholders. See The Pirates which siezed the Armada )
  
  In an interview with Business Times, Halim said his primary reason for doing so was because the outlook for the shipping sector here has turned bleak, and he wanted to give minority shareholders a "fair shake".
  
  "We only have two ships left ... both are on charter up to next year, and if the outlook for global container shipping lines continues to weaken, Halim Mazmin could end up as a company with no business to sustain its capital spread," said Halim.
  
  He noted that banks are reluctant to provide fresh capital to shipowners to buy vessels under the current global economic outlook.
  
  "By deciding to make a capital repayment to stakeholders, I am taking a personal risk, as upon completion of the exercise, all the liabilities are mine," said Halim, in justifying the decision to keep the company private.
  
  The company is being advised by AmInvestment Bank, while OSK Investment Bank Bhd is the independent advisor to minority shareholders.
  
  Under the deal, Halim will not make a general offer. Instead, the company will use its cash to pay shareholders 60 sen a share, and then proceed to cancel the shares. Halim and his family members hold 63.57 per cent of the listed entity.
  
  At group level, Halim Mazmin has RM263.43 million in cash and liabilities of RM111.47 million.
  
  The offer is also a 50 per cent premium over the company's last traded price of 40 sen a share.
  
  Meanwhile, the group also announced its 2008 results yesterday. For the 12 months ended December 31 2008, Halim Mazmin at the group level registered revenue of RM32.60 million alongside a pre-tax profit of RM4.98 million.

Halim Mazmin announced its earnings last nite too: Quarterly rpt on consolidated results for the financial period ended 31/12/2008

The offer to buy up the remaining shares would cost 70 million.

• At group level, Halim Mazmin has RM263.43 million in cash and liabilities of RM111.47 million.

How?