Ajinomoto (Malaysia) Berhad (AMB) is set to be taken private by its Japanese parent company, Ajinomoto Co Inc (AJICO), through a proposed selective capital reduction and repayment exercise worth approximately RM603.4 million.
In a filing with Bursa Malaysia on Monday, AMB said its board of directors had received a letter from AJICO outlining the privatisation proposal.
Under the plan, AJICO intends to pay RM20 per share, amounting to about RM603.4 million, to all shareholders other than the Japanese parent company itself.
The offer will involve approximately 30.17 million shares held by eligible minority shareholders, representing 49.62 per cent of Ajinomoto Malaysia’s total issued shares.
To facilitate the exercise, AJICO also proposed a bonus issue of 571.1 million new shares by capitalising RM571.1 million from the company’s retained earnings. The move is expected to strengthen the company’s share capital structure ahead of the implementation of the selective capital reduction (SCR).
AJICO confirmed that it does not intend to maintain Ajinomoto Malaysia’s listing status on the Main Market of Bursa Malaysia once the proposal is completed.
The company said the exercise would provide minority shareholders with an opportunity to realise their investments through a cash exit while addressing the long-standing issue of low trading liquidity in the company’s shares.
According to AJICO, Ajinomoto Malaysia’s shares have recorded an average daily trading volume of only around 38,715 shares over the past five years.
That figure represents just 0.13 per cent of the company’s free float of more than 30 million shares as of June 15, highlighting the limited trading activity in the stock.
AJICO also noted that AMB has not raised equity capital from the market for more than a decade, resulting in minimal benefits from remaining a publicly listed company.
The parent company said privatisation would provide greater flexibility for Ajinomoto Malaysia to pursue its business objectives and improve operational efficiency without the burden of maintaining listed-company obligations.
“This includes streamlining and simplifying the corporate structure without having to allocate management time and resources towards ongoing regulatory compliance, disclosure requirements and listing-related costs,” the company said.
In a separate statement, AJICO said the move is aligned with its broader strategy to strengthen and expand its business portfolio globally as part of its ASV Mid-Term Roadmap 2030.
The Japanese food giant said it remains committed to enhancing corporate value through its AminoScience-based businesses while continuing to contribute to the well-being of people and society.
Ajinomoto Malaysia was established in July 1961 and adopted its current name after becoming a public company in 1968.
For the financial year ended March 31, 2026, the company reported a 43.9 per cent increase in net profit to RM71.45 million, while revenue rose 3.8 per cent to RM710.21 million, reflecting strong financial performance ahead of the proposed privatisation.
