KUALA LUMPUR (April 6): Hock Seng Lee Enterprise Sdn Bhd (HSLE), which is taking Hock Seng Lee Bhd private at RM1.35 per share, has extended the closing date of its takeover offer by two weeks to April 21, 2022, from its initial deadline of April 7.
HSLE together with persons acting in concert (PACs) have raised their stake in HSL to 501.44 million shares or 91.25% as of April 5, from 468.67 million shares or 85.29% from when the offer was first made, HSL filing showed.
“Save for the extended closing date, all other details and the terms and conditions as set out in the offer document remain unchanged,” according to a letter from the offeror announcing the extension.
The takeover offer was first announced on Feb 17 involving HSLE, where the joint ultimate offerors comprised Datuk Yu Chee Hoe, Tang Sing Ngiik, Vincent Yu Yuong Yih and Tony Yu Yuong Wee.
Based on acquisition rules, HSLE would need to secure an acceptance level of 96% in order to trigger a compulsory acquisition of all remaining shares not owned by the offer.
Independent advisor Mercury Securities Sdn Bhd in its circular dated March 28 has deemed the offer as “not fair” as the offer price of RM1.35 represents a discount of between 60 sen (30.77%) and 63 sen (31.82%) over the range of estimated value per share of HSL of between RM1.95 and RM1.98, based on sum-of-parts valuation.
However, Mercury Securities said the offer is “reasonable” as it provides an opportunity for minority shareholders to exit the Sarawak-based marine engineering and construction company, whose shares are illiquid.
Shares of HSL traded around the RM1-mark prior to the news of the takeover. The counter last traded unchanged at RM1.35, giving the group a market capitalisation of RM786.61 million.