Euro Holdings major shareholder's MGO rejected

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KUALA LUMPUR: None of the minority shareholders of Euro Holdings Bhd accepted the conditional mandatory general offer (MGO) made by executive director and major shareholder Datuk Seri Choong Yuen Keong and two other substantial shareholders to buy the remaining shares they do not own in the company at 44  sen apiece.

In a filing with Bursa Malaysia this evening, the company said the offer failed to meet its acceptance condition as none of the company’s remaining shareholders accepted the offer from Choong, Datuk Tong Yun Mong and Tee Wee Sien.

The offer is conditional upon the trio obtaining valid acceptances by the closing date, which would result in the trio holding, in aggregate, more than 50% of the voting shares in Euro Holdings - excluding treasury shares.

The office furniture maker said “from Sept 23, being the posting date of the offer document, up to the closing date of Oct 14, none of the offer shares has been received as acceptances or acquired by the joint offerors”.

As at Sept 23, the trio collectively holds 38.606 million shares, which represent a 47.66% stake in Euro Holdings.

To recap, Choong, Tong and Tee had on Sept 2 this year launched the MGO to acquire all the remaining 42.394 million shares or 52.3% stake in Euro not already held by them.

The offer price of 44 sen per share is at a discount of 10.5 sen or 19% over the company’s closing price of 54.5 sen on Sept 2.

Euro closed 0.5 sen lower at 63 sen today, giving it a market capitalisation of RM51 million.