KUALA LUMPUR (Sept 29): Heng Huat Resources Bhd received a notice of mandatory takeover offer from two substantial shareholders — its managing director Datuk H'ng Choon Seng and Goh Boon Leong — at 37.7 sen a share and 29.7 sen per warrant.
The conditional mandatory takeover was triggered after the duo entered into a joint venture (JV) to “formalise corporation in the management of Heng Huat and its subsidiaries”, Heng Huat in the filing with Bursa Malaysia on Thursday (Sept 29).
Their shares plus those held by parties acting in concert are all housed under GH Consortium Sdn Bhd. As a result, GH Consortium currently controls a 48.14% stake, or 359.25 million shares, exceeding 33.3% in Heng Huat. Accordingly, it is obliged to make a mandatory offer to acquire the remaining shares it does not own.
The number of shares the duo does not own is 386.98 million shares. Based on the offer price, it will cost the duo RM145.93 million to acquire all remaining shares.
The offerors intend to maintain the listing status of Heng Huat in the ACE Market, according to the filing.
Some substantial shareholders, such as CFamillie Holdings Sdn Bhd (21.81%); Ch'ng Boon Hock (3.57%) and Cheah Ah Hock (4.61%) have given their undertakings not to accept the takeover offer.
Heng Huat shares were last traded at 38 sen on Wednesday (Sept 28), valuing the group at RM283.6 million.
The offer price is at a 2.68% discount based on one day volume weighted average trade price (VWAP), and 0.03%-19.45% premium based on 1,3,6 and 12 months VWAP (volume-weighted average price).
According to the notice, the offerers intend to maintain the listing status of Heng Huat in the ACE market.
Trading in the shares and warrants of Heng Huat will resume from 9am on Friday (Sept 30).
Heng Huat is principally involved in the manufacturing and trading of biomass material and value-added products, focusing on oil palm empty fruit bunch fibre, coconut fibre and value-added products.
It also manufactures and distributes its own brands of mattresses and bedding accessories, and has ventured into furniture and property segments.