KUALA LUMPUR (Sept 17): The call and put option agreement that would have seen Siva Kumar M Jeyapalan, who is executive chairman of Masterskill Education Group Bhd (MEGB), selling his entire holdings in MEGB to its Chief Executive Officer Gary How Soong Khong, has been terminated.
In a filing with Bursa Malaysia today, Siva Kumar, who owns 28.08% of MEGB, said he has entered into a Mutual Termination Agreement with How, who is also the executive director of MEGB, to terminate the call and put option agreement first entered on March 19 this year.
It was earlier reported that Siva Kumar stood to reap RM134 million from the planned sale of his 122 million shares or 29.76% stake in the firm, should the call and put option been exercised between himself and How. It is worth noting the option price was set at RM1.10 per share, which was a significant premium to MEGB’s then share price of about 40 sen. The stock closed 0.5 sen lower at 36.5 sen today.
Siva Kumar’s interest in MEGB was subsequently reduced to 28.08%, after he recently sold 1.68% to How at RM1.10 per share, as per the option agreement.
“He [How] has expressly confirmed that he is unable to complete the purchase of Siva Kumar’s shares within the call option period of six months, which will result in the call option being lapsed by Sept 19,” read the announcement by MEGB.
The effects of the termination agreement will result in Siva Kumar withdrawing his right to exercise a put option as stated in the call and put option agreement, and that How will have no right to compel Siva Kumar to buy back whatever number of shares that has completely crossed and been transferred to him.
Additionally, the termination agreement would also result in the call and put option agreement becoming null and void.