Friday 29 Mar 2024
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This article first appeared in The Edge Financial Daily on February 21, 2018

KUALA LUMPUR: Jacobs Douwe Egberts Holdings Asia NL BV (JDE Asia) yesterday issued the offer document for its conditional voluntary takeover offer of OldTown Bhd at RM3.18 per share, which will be open until March 13.

According to the document, JDE Asia said it had obtained irrevocable undertakings from shareholders Old Town International Sdn Bhd, Lee Siew Heng and Mawer Investment Management Ltd, who collectively hold 238.32 million shares representing a 51.45% stake. JDE Asia intends to delist and privatise OldTown upon the acquisition, as this would provide both parties greater control and management flexibility in the implementation of any strategic initiatives or operational changes.

In the event that the offeror receives acceptances for 90% or more of OldTown shares, trading in the counter will be suspended after five market days from March 13, and the requisite steps will be taken to delist OldTown.

JDE Asia said it plans to continue the existing business of OldTown, but said it may review the businesses and operations. It said it may transfer portions of the coffee-related business of OldTown to other jurisdictions, as JDE Asia has an affiliated entity involved in coffee-related business in China, Hong Kong, Taiwan and Macau. It added that it does not have any plans to introduce any major changes to the business of OldTown or to liquidate any of the companies within the group, dispose of any major assets or undertake any major redeployment of fixed assets of the group.

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