Friday 29 Mar 2024
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KUALA LUMPUR (Jan 21): Nexgram Holdings Bhd said today that it will withdraw its takeover offer of Ire-Tex Corp Bhd.

In a filing with Bursa Malaysia today, Nexgram said it is in the best interest of the company to make an application to the Securities Commission of Malaysia (SC) to withdraw the offer, in view of recent developments and events that have transpired and after taking into consideration the timeline of the offer permitted under the code.

“Mercury Securities had, on behalf of the Nexgram Board, applied for the written consent of the SC, pursuant to section 11(13) of the code to withdraw the offer on [the same] date,” Nexgram said.

It added that the withdrawal is subject to the consent of the SC.

“Upon the consent of the SC, the offer shall cease and all acceptances received pursuant to the offer shall be returned to the accepting holders,” Nexgram added.

Last Friday (Jan 15), the SC, via a statement, had raised red flag on Nexgram’s takeover offer for Ire-tex, after the former entered into agreements this month to dispose of three of its subsidiaries, roughly two months after proposing the voluntary takeover.

The SC also highlighted the proposed disposal came about while Bursa Malaysia was seeking verification from Nexgram on the existence of certain assets belonging to these subsidiaries.

The subsidiaries were also subject to ongoing enquiry by the SC, in relation to the accuracy of information disclosed in the offer document.

Nexgram shares closed 0.5 sen or 7.7% lower at 6 sen today, with 13.13 million shares traded, giving it a market value of RM122.3 million.

(Note: The Edge Research's fundamental score reflects a company’s profitability and balance sheet strength, calculated based on historical numbers. The valuation score determines if a stock is attractively valued or not, also based on historical numbers. A score of 3 suggests strong fundamentals and attractive valuations.)

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