The Tsai family, the major shareholders of Tong Herr Resources Bhd, has proposed to take the company private at RM2.55 per share through a selective capital reduction exercise, according to The Edge Malaysia.
The proposal was announced on Thursday, 6 August 2026, after trading in the company's shares was halted earlier in the day to facilitate the announcement. The Edge Malaysia reported that the move was confirmed by multiple outlets, including The Star, NST Online, and The Malaysian Reserve, all of which carried similar reports on the privatisation plan.
Under the selective capital reduction scheme, the Tsai family would effectively buy out minority shareholders at the stated price of RM2.55 per share. This type of exercise allows a company to reduce its share capital by cancelling shares held by shareholders other than the controlling parties, with the remaining shares continuing to be held by the major shareholders.
The proposal comes as part of a broader trend of privatisations on Bursa Malaysia, where controlling shareholders often seek to delist companies they believe are undervalued or where they want greater operational flexibility without public market scrutiny. Tong Herr, a manufacturer of fasteners and precision components, has been listed on the Malaysian bourse for years, though the specific reasons for the privatisation were not detailed in the reports.
The RM2.55 per share offer price will be subject to approval by shareholders and regulatory authorities. The company is expected to convene an extraordinary general meeting to seek the necessary approvals, with a timeline for the exercise likely to be outlined in a formal circular to shareholders in the coming weeks. Investors holding Tong Herr shares will need to decide whether to accept the offer or seek a higher price through negotiations.
