KUALA LUMPUR (May 6): TA Enterprise Bhd (TAE) has today submitted an application to the Securities Commission (SC) to withdraw its voluntary takeover offer to acquire up to 39.83% stake in property group TA Global Bhd (TAG).

This decision, TAE said in a bourse filing today, was made after taking into consideration, among others, the adverse impact of Covid-19 pandemic to TAG Group in the financial year ending Dec 31, 2020 (FY20). 

The expected impact arises from the temporary suspension of operations of several hotels under TAG Group in March and April, as TAG announced on April 13, it added. 

“The board is of the view that the ripple effects of Covid-19 pandemic are still unfolding and the full impact of this pandemic can only be determined, after the situation stabilises,” TAE said. 

“Upon receipt of the SC’s prior written consent, the offer shall cease and TAE will be released from any obligation arising from the offer with immediate effect,” the filing added. 

The offer, announced on Feb 12, stipulates TAE’s plan to acquire up to 2.12 billion shares in TAG, representing up to 39.83% interest, for 28 sen per share or RM593.43 million.

To part-fund the deal, TAE proposed the issuance of up to 550.54 million new TAE shares at 66.5 sen apiece, to be subscribed by controlling shareholder Datuk Tiah Thee Kian, in order to fund the acquisition. 

TAE has said it does not intend to maintain the listing status of TAG on Bursa Malaysia's Main Market.

Shares of TAE fell half a sen or 1.02% to 48 sen today, valuing the stockbroking group at RM830.28 million. TAG shares rose half a sen or 2.13% to 24 sen, giving it a market capitalisation of RM1.28 billion.