KUALA LUMPUR (Sept 25): The Minority Shareholder Watchdog Group (MSWG) has described the move by certain Willowglen MSC Bhd’s shareholders to dispose their shares at 80 sen per share, which was done at “a rather big discount” to the current trading price, as “puzzling and unfathomable”.

“As for Willowglen: what could possibly have compelled the vendors to have parted with their stock in a company, which is both cash-rich and growing steadily,” the watchdog group said in its weekly The Observer newsletter, adding “this certainly invites a lot of questions”.

“Moreover, the disposal was at a rather big discount to the market price which, all the more, makes it more puzzling and unfathomable,” MSWG added.

Now that a mandatory general offer has been triggered, MWSG said, “perhaps the reason for the mysterious sale might emerge. Or not”.

To recap, New Adventa Sdn Bhd had on Sept 12, 2017 launched an unconditional takeover of the remaining shares it does not own at 80 sen per share.

New Adventa is a vehicle owned by Willowglen’s major shareholder Wong Ah Chiew, his son Simon Wong Chu Keong and related parties. Chu Keong is currently Willowglen’s managing director.

The takeover was triggered after New Adventa’s stake in Willowglen increased to 55% from 32.08%, as a result of its acquiring a 22.92% equity stake from six vendors: Ling King Ling, Paul Yii See Ying, Teh Boon Wee, Hue Nyet Fong, Au Yiu Joo and Jasmine Villa Development Sdn Bhd.

As for the takeover price of 80 sen per share, Willowglen said it was at a 39.39% discount to the last closing price of Sept 11, 2017, just a day before it launched the take-over move. The offer price is also at an aggregate of 35.48%, as measured by volume-weighted average price and calculated since the last one year.

Advised by RHB Investment Bank Bhd, Willowglen said New Adventa plans to maintain the listing status on Bursa Malaysia.

Listed on the Main Market, shares in Willowglen — a technology solutions provider — paused at RM1.21 at noon-break today, valuing it at a market capitalisation of RM300.08 million.