KUALA LUMPUR (Jan 30): Weida (M) Bhd rose as much as 25 sen or 12% to RM2.30 after founder and group executive chairman Datuk Lee Choon Chin offered to privatise the diversified company at RM2.40 a share. Weida's businesses include environmental engineering services and property development.

At 11:07am, Weida shares pared gains at RM2.25 with 1.12 million units traded. Weida was the fifth-largest gainer across Bursa Malaysia. Weida's latest-reported book value stood at RM3.31 a share.

Areca Capital Sdn Bhd chief executive officer Danny Wong Teck Meng told theedgemarkets.com that Weida's share price is “trying to catch up” with the offer price. “In fact it (the share price) should be nearer to the offer price,” Wong said.

Yesterday, Weida said in a filing with the bourse that the company received a letter from Weida Management Sdn Bhd (WMSB), which indicated WMSB's intention to privatise Weida via selective capital reduction and repayment (SCR). Lee is a major shareholder in WMSB. 

Weida said: "The proposed SCR involves Weida undertaking a selective capital reduction and a corresponding capital repayment of a proposed cash amount of RM2.40 per ordinary share in Weida held by all the shareholders of Weida (other than non-entitled shareholders, as set out in the SCR offer letter), whose names appear in the record of depositor of Weida, as at the close of business on an entitlement date to be determined and announced later by the board."