Fordington to compulsorily acquire Yokohama shares within two months

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KUALA LUMPUR (Apr 29): Fordington Pte Ltd will compulsorily acquire within two months, any remaining shares for which acceptances have not been received for its proposed takeover of Yokohama Industries Bhd, a filing to Bursa Malaysia revealed this evening.

In the filing, Yokohama (fundamental: 0.8; valuation: 0.8) said Fordington intends to invoke provisions under Section 222(1) of the Capital Markets and Services Act 2007, to compulsorily acquire any remaining shares for which acceptances have not been received as at May 5, 2015, being the final closing date.

Fordington seeks to acquire all the remaining ordinary shares of 50 sen each in Yokohama not already held by the offeror and persons acting in concert with it, at a cash offer price of RM1.70 per offer share.

Yokohama said Fordington’s offer will remain open for acceptances up to 5pm next Tuesday, and no further extension of the closing time as well as date for the offer will be made.

Yokohama also reiterated that Bursa will suspend the trading of Yokohama shares upon expiry of 5 market days from next Tuesday i.e. with effect from 9am on May 13, 2015.

In December last year, Yokohama’s Singapore-based largest shareholder HSG Investments Pte Ltd entered into a heads of agreement with Fordington to dispose of its entire 62.16% stake in Yokohama for RM1.70 apiece to the latter, pending a due diligence on Yokohama.

The RM 1.70 purchase price represents a 42 sen or 32.81% premium against Yokohama's last trading price of RM1.28.

The deal triggered a mandatory takeover offer (MGO) for the remaining Yokohama shares of the group.

Yokohama shares closed unchanged at RM1.70 today, with a market capitalisation of RM145 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.)