KUALA LUMPUR (Dec 15): The Securities Commission Malaysia (SC) has given the greenlight to Insas Bhd’s proposal to list its stockbroking arm M & A Securities Sdn Bhd via a reverse takeover of furniture maker SYF Resources Bhd.
The SC approved the application in a letter dated Dec 14, according to SYF's bourse filing on Thursday.
Based on the revised terms of the offer that were announced previously, the consideration shares to be issued by SYF for the take over of M&A Securities would be issued at 22 sen per share, instead of 14 sen.
Insas, which intends to inject M&A Securities into SYF, will receive 1.009 billion new SYF shares instead of 1.58 billion shares for the sale of the stockbroking arm at RM222 million.
And the proposed one-for-two renounceable rights issue have been fixed at 22 sen per share, while the restricted issue of 215.45 million new shares to eligible directors and employees of the enlarged SYF — including M & A Securities and its subsidiaries and persons who have contributed to the business of M&A — have been reduced to 157.8 million new shares.
The SC also granted approval for the proposed exemption for Insas and its persons acting in concert from the obligation to undertake a mandatory take-over to acquire the remaining SYF shares not already owned by them upon completion of the proposed acquisition.
As part of the proposal, SYF will dispose of its rubberwood furniture manufacturing arm Seng Yip Furniture Sdn Bhd to Mieco Chipboard Bhd for RM50 million cash and to sell two parcels of land in Cheras for RM21.2 million cash.
On completition of the disposals, SYF will distribute cash distribution of 18 sen per share — seven sen per share after completing the disposal of Seng Yip and 11 sen after the freehold land plots are sold.
SYF will be renamed M & A Equity Holdings Bhd once the RTO is completed, as the earlier proposed name, M&A Capital Bhd, was not approved by the Companies Commission of Malaysia.
SYF's share price closed at 36 sen on Thursday, giving it a market capitalisation of RM207 million.
Note: This article has been updated for accuracy. The previous version stated that the approval was conditional upon certain revisions to be made. The error is regretted.