This article first appeared in The Edge Financial Daily on March 21, 2018

KUALA LUMPUR: Jacobs Douwe Egberts Holdings Asia NL BV (JDE Asia) has received valid acceptances for 456.78 million OldTown Bhd shares, representing a 98.6% stake in the company, following the closing of its offer yesterday.

In a filing with Bursa Malaysia, OldTown said the offeror will compulsorily acquire the remaining shares as provided for by the Capital Markets and Services Act 2007 (CMSA).

“The offeror will issue a notice in the form or manner specified by the Securities Commission Malaysia under Section 222 of the CMSA, informing the dissenting shareholders of the offeror’s intention to compulsorily acquire their OldTown shares,” it said.

The compulsory acquisition notice will be sent to the dissenting shareholders within two months from March 13.

In February, JDE Asia issued its offer for OldTown shares at RM3.18 per share, after receiving irrevocable undertakings from Old Town International Sdn Bhd, Lee Siew Heng and Mawer Investment Management Ltd, who collectively hold 238.32 million shares or a 51.45% stake.

The initial closing date of the offer was on March 13 but was extended for a week to March 20. The offeror intends to delist and privatise OldTown upon the acquisition, as this would provide both parties greater control and management flexibility to implement any strategic initiatives or operational changes.

OldTown’s share price fell four sen or 1.27% to RM3.12 yesterday, with a market capitalisation of RM1.45 billion.