KUALA LUMPUR (Aug 29): A unit of TA Global Bhd which manages the Trump International Hotel in Vancouver, Canada, has reportedly filed for bankruptcy as its operations were affected by the Covid-19 pandemic.
Reuters reported that TA Hotel Management Ltd Partnership (TAHMLP) said the temporary closure since March due to the pandemic had impacted the hotel's business.
A statement on the company website said the ongoing expenses since the outbreak and lack of revenue "has placed TAHMLP into a position of insolvency".
TAHMLP owes C$4.79 million (RM15.22 million) and has total assets of C$1.1 million, according to Reuters, citing documents filed in Canada.
TA Global is currently being taken private by its parent company TA Enterprise Bhd (TAE) following a Feb 12 announcement that the group's chairman and co-founder Datuk Tony Tiah Thee Kian had proposed to acquire up to 2.12 billion shares or 39.83% equity interest in the property group.
TA Global shareholders may choose from either a cash offer of 28 sen per existing share held, or a share swap based on an exchange ratio of 0.4211 new ordinary share in TAE to be issued at 66.5 sen each for every TA Global share surrendered.
In May, however, TAE had applied to withdraw the takeover offer, citing the adverse impact of Covid-19 on TA Global for the financial year ending Dec 31, 2020, due to temporary suspension of operations of several hotels under the group in March and April.
A month later, the Securities Commission Malaysia (SC) rejected the withdrawal application and said any announcement of a firm offer should be made only after careful and responsible consideration, as once the offer is made, the market in the shares of the company is likely to be supported by the offer price.
In July, TAE said the material properties of the TA Group have to be revalued, due to a delay in implementing its takeover offer for TA Global "to ensure that the date of valuation which forms the basis of the valuation certificate to be included in the circular, shall not be more than six months before the date of the circular issued to shareholders".
On Aug 11, the group said the SC had granted an extension of time for TAE to dispatch the offer document and acquire Bursa Securities' approval no later than Nov 13 this year, while the draft independent advice circular must be submitted to the SC and be approved by Nov 12.
Read also:
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TA Enterprise seeks SC nod to withdraw takeover bid for TA Global
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TA Enterprise should have considered risks before announcing takeover offer — SC
TA Enterprise: Group's properties have to be revalued due to delay in implementing takeover offer
Edited by Lam Jian Wyn