KUALA LUMPUR (April 19): Hong Seng Lee Enterprise Sdn Bhd (HSLE), which is taking Hock Seng Lee Bhd private at RM1.35 per share, has further extended the closing date of its takeover offer by over two weeks to May 9, from April 21.
The closing date was initially set for April 7, before HSLE extended it to April 21. The offer was first announced on Feb 17. The joint ultimate offerors of the deal are Datuk Yu Chee Hoe, Tang Sing Ngiik, Vincent Yu Yuong Yih and Tony Yu Yuong Wee.
"A notice of the said extension will be posted by the offeror to the shareholders accordingly. Save for the final closing date, all other details and the terms and conditions of the offer as set out in the offer document remain unchanged," Hock Seng Lee announced in a bourse filing on Monday (April 18).
As of Monday, HSLE and its ultimate offers and persons acting in concert with it held 516.068 million Hock Seng Lee shares, representing 93.92% in Hock Seng Lee. The offerors need to secure an acceptance level of 96% to trigger a compulsory acquisition of all remaining shares not owned by them.
In a circular dated March 28, independent advisor Mercury Securities Sdn Bhd told shareholders that the offer was “not fair” as the offer price is between 30.77% and 31.82% less than the estimated value per share of HSL of between RM1.95 and RM1.98, based on a sum-of-parts valuation.
Nevertheless, Mercury Securities said the offer was “reasonable” as it would provide an opportunity for minority shareholders to exit the Sarawak-based marine engineering and construction company, whose shares are illiquid.
Hock Seng Lee shares settled at RM1.35 on Monday, for a market capitalisation of RM786.61 million. The stock traded between 95 sen and RM1.40 in the past year.