Hovid offer acceptance at 61.45%, closing date extended to Dec 29

This article first appeared in The Edge Financial Daily, on December 5, 2017.
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KUALA LUMPUR: The major shareholders of Hovid Bhd have extended the closing date to accept their takeover offer to Dec 29, after their shareholding rose to only 61.45% as of the cut-off date yesterday — below the 75% acceptance level they are seeking. This is the third extension since the proposal to take the pharmaceutical group private was announced on Oct 9.

In a statement yesterday, the group said the level of acceptance for Hovid’s warrants stood at 76.03%.

It added that the offer prices for the shares and warrants remain unchanged at 38 sen and 20 sen a piece respectively.

Hovid’s controlling shareholder David Ho Sue San is making a joint offer, together with private equity firm TAEL Two Partners Ltd, to buy all the remaining shares they do not own.

TAEL is undertaking the offer via its special-purpose vehicle Fajar Astoria Sdn Bhd. On Nov 22, Ho and TAEL made a second extension of the cut-off date for the acceptance of the offer to Thursday from yesterday. The original deadline was Nov 20. They had also lowered the acceptance condition threshold to 75% from 90%.