The Minority Shareholder Watchdog Group said IOI Properties’ (1961) minority shareholders are still a force in the long run despite being in an unlisted IOI Prop.
IOI Corp Bhd had on March 31 announced that it holds approximately 742.328 million ordinary shares of 50 sen each representing 91.33 per cent of the issued and paid-up capital of IOI Prop as a result of acceptances received under the voluntary takeover offer by IOI Corp.
Therefore, the public shareholding spread of IOI Prop as at March 31 has become less than 10 per cent, MSWG said in a statement.
IOI Corp does not want to maintain the listing status of IOI Prop.
MSWG said the minority shareholders who want to hold on and willing to ride along with the IOI Corp even if IOI Prop is delisted will still benefit from IOI Prop’s performance in the long run.
Those who wish to remain in the unlisted entity of IOI Prop will have three consequences, MSWG said.
They will be locked in the unlisted IOI Prop with limited exit strategy for their unquoted IOI Prop shares held.
They could also be entitled to dividend payments declared by IOI Prop to IOI Corp in the future. However, it is at the board’s discretion to declare dividends.
The rights of the minority shareholders in the unlisted IOI Prop will still be regulated under the Companies Act 1965.