Scientex serves MGO notice to Daibochi to buy shares at RM1.59 apiece

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KUALA LUMPUR (Feb 11): Scientex Bhd has served its mandatory general take-over offer (MGO) to Daibochi Berhad (Daibochi) to acquire all the remaining shares it does not hold in the latter.

The packaging manufacturer and property developer had earlier today obtained shareholders’ approval at its Extraordinary General Meeting (EGM) for the acquisition of a 42.4% controlling stake in Daibochi for RM221.1 million from certain shareholders of Daibochi.

The purchase of 139.1 million shares would be satisfied by the issuance of 25.1 million Scientex shares, with a share exchange ratio of one new ordinary Scientex share for every 5.535 Daibochi shares held.

Scientex said the MGO entailed an offer price of RM1.59 for every Daibochi share.

Daibochi shareholders will have the option to elect for share swap on the basis of one new ordinary Scientex share for every 5.535 Daibochi shares held, or to receive RM1.59 in cash for every Daibochi share held, it explained.

In a separate statement, Scientex managing director Lim Peng Jin said the company sees two key areas where its combined expertise can place both Scientex and Daibochi on an accelerated growth trajectory synergistically.

“Firstly, the knowledge-sharing between our in-house Research and Development teams would enable us to develop a wider range of sustainable flexible plastic packaging, in close collaboration with brand owners and multinational corporations. This is imperative to being in the forefront of product innovation, in line with increasingly urgent demand for more environmentally-friendly products.

“Secondly, we are poised to benefit from increasing opportunities in the food and beverage (F&B) and fast moving consumer goods (FMCG) markets in Myanmar, as it transitions from a closed to open economy. We hope to scale up its operations to tap into the fast-growing market,” Lim said.