KUALA LUMPUR (Jan 25): Koon Hoi Chun via AKK Capital Sdn Bhd is buying a 60.41% stake in carpet maker Paragon Union Bhd from major shareholders in an off-market deal which led to a planned unconditional mandatory takeover offer from the buyer to acquire the remaining  shares in Paragon Union at 55 sen each.

In a statement to Bursa Malaysia last Friday, Paragon Union said it had then received the notice of the unconditional mandatory takeover offer from Hong Leong Investment Bank Bhd on behalf of AKK.

"Pursuant to Paragraph 3.06 of the Rules on Take-overs, Mergers and Compulsory Acquisitions issued by the Securities Commission Malaysia (SC), an independent adviser will be appointed by the board in due course to provide comments, opinions, information and recommendation to the holders of the offer shares.

"A copy of the notice is attached and will be posted to the shareholders of Paragon Union within seven days from the date of this announcement.  This announcement is dated 22 January 2021,” Paragon Union said.

AKK’s offer at 55 sen a share values Paragon Union at about RM36.4 million based on the company’s latest reported number of issued shares at 66.18 million.

Paragon Union shares were last traded unchanged at 97 sen, with a market capitalisation of around RM64.19 million.

According to the takeover offer notice, which was attached to Paragon Union’s Bursa filing, AKK is the offeror, while Koon is the ultimate offerer under the corporate exercise.

Koon is the sole shareholder and director of AKK, according to the notice. 

AKK and Koon did not own any Paragon Union shares prior to the  60.41% stake buy in Paragon Union, the notice said.

The notice said AKK last Friday entered into unconditional share sale agreements with Paragon Union shareholders Asia Avenue Sdn Bhd, Tan Choon Hock, Kong Say Thor, Lee Poh Ting and Lee Poh Yee to buy a collective 39.98 million shares representing the 60.41% stake in Paragon Union from them.

According to the notice, AKK intends to maintain Paragon Union’s listing status on Bursa’s Main Market.