PETALING JAYA: One of the first Japanese companies to set up operations in the country is expected to be leaving Bursa Malaysia, after its Tokyo-headquartered parent said there was “minimal benefit” in keeping the company listed on the stock exchange.

Ajinomoto Co Inc (Ajico) is pursuing a RM603.4mil privatisation of Ajinomoto (Malaysia) Bhd

through a proposed selective capital reduction and repayment (SCR) exercise, offering minority shareholders RM20 cash per share.

The Ajinomoto Malaysia stock last traded at RM15.20 apiece on June 19, before the temporary suspension on June 22. Since the beginning of April, the stock has rallied by nearly 24%.

While no deadline has been given, similar privatisation exercises in Malaysia which were effected by way of a SCR had taken about six months to complete.

Ajinomoto Malaysia is the dominant producer of monosodium glutamate (MSG) and was previously reported to have a market share of over 80% in Malaysia.

Ajico, which itself is listed on the Tokyo Stock Exchange, currently has a direct shareholding of 50.38% in Ajinomoto Malaysia.

In a filing with Bursa Malaysia yesterday, Ajico requested the board of directors of Ajinomoto Malaysia to table the proposed SCR for the remaining 49.62% stake held by the minority or entitled shareholders.

“In view that the proposed SCR involves a capital repayment of an amount higher than the existing issued share capital of Ajinomoto Malaysia, a bonus issue of 571,107,421 Ajinomoto Malaysia shares by way of capitalising RM571.1mil from the retained earnings of Ajinomoto Malaysia is proposed to be undertaken.

“The proposed bonus issue will increase the issued share capital of Ajinomoto Malaysia up to a level that is sufficient to facilitate the proposed SCR.

“The non-entitled shareholder (Ajinomoto Co Inc) will waive their rights to the proposed bonus issue.

“Immediately after the proposed bonus issue, Ajinomoto Malaysia will undertake a capital reduction of the issued share capital of Ajinomoto Malaysia by RM603.4mil where all 30,170,689 Ajinomoto Malaysia shares held by the entitled shareholders and all 571,107,421 bonus shares will be cancelled pursuant to the proposed SCR,” it said in the filing.

Following the exercise, Ajinomoto Malaysia will be the wholly-owned subsidiary of Ajico.

Ajico has noted that it does not intend to maintain the listing status of Ajinomoto Malaysia on the Main Market of Bursa Malaysia.

The RM20 offer price by Ajico represents a 31.58% premium to the closing price on June 19.

Explaining its rationale for the proposed SCR, Ajico said the exercise provides an opportunity to the minority shareholder to exit and realise their holdings in Ajinomoto Malaysia.

It also cited the historically low trading liquidity of Ajinomoto Malaysia shares as a reason.

For the past five years, the average daily trading volume stood at only about 38,715 shares.

This average daily trading volume represents approximately 0.13% over the free float of Ajinomoto Malaysia comprising over 30 million shares as at June 15.

Ajico also said there was minimal benefit from Ajinomoto Malaysia’s listing status.

Ajinomoto Malaysia has not undertaken any equity fund-raising activity from the capital market for more than 10 years.

In addition, the company continues to incur costs and allocate management time and resources to maintain its listing status on the Main Market, according to Ajico.

“In this regard, the proposed SCR will provide greater flexibility for Ajinomoto Malaysia to pursue its business objectives and enhance operational efficiency, including by streamlining and simplifying its corporate structure, without the need to allocate management time and resources to comply with regulatory requirements, including ongoing disclosure and reporting requirements, or to incur costs associated with maintaining its listed status on Bursa Securities.”

In a disclosure to the Tokyo exchange, AjicoJICO said the proposed privatisation will further advance Ajinomoto Malaysia’s business operations through swift and flexible decision-making by enhancing management flexibility.

“And by further strengthening global business collaboration, we will achieve sustainable growth in the corporate value of our group.”

In a separate press release, Ajico said it aims to strengthen and grow its business portfolio across each global region to realise its Medium-Term ASV Initiatives 2030 Roadmap.

“Through this initiative, Ajico will further strengthen its groupwide collaboration, aim to sustainably enhance corporate value through business built on the strengths of AminoScience, and fulfill its purpose to contribute to the well-being of all human beings, our society and our planet.”

Ajinomoto Malaysia was established in Malaysia back in July 1961 and adopted the current name after conversion to the public company status in 1968.

The company’s net profit for the financial year ended March 31, 2026 jumped by 43.9% year-on-year to RM71.45mil, while revenue rose by 3.8% to RM710.21mil.