This article first appeared in The Edge Financial Daily, on April 12, 2016.
KUALA LUMPUR: ML Global Bhd will be bidding for construction jobs from the government, said Tan Sri Lim Hock San, managing director of LBS Bina Group Bhd, which has gained control of the former holding a 50.92% equity stake.
“The next step is to bid for government jobs … construction jobs, after we take control of the management [of ML Global],” Lim told The Edge Financial Daily yesterday.
“We have been invited by a few government agencies to tender for jobs. Without a listed company, we can’t [participate],” said Lim.
Gaining control of ML Global would help pave way for LBS Bina to spread its wing in infrastructure building, which Lim expects to provide complementary income to the property group.
To recap, LBS Bina bought an additional 17 million shares, or a 18.97% equity stake, in ML Global from substantial shareholder and managing director Datuk Beh Hang Kong for RM9.5 million or 56 sen per share.
The acquisition raises LBS Bina’s stake in ML Global to 50.92% from 31.95%. Consequently, the property group has launched a mandatory takeover offer for the remaining shares not owned at 56 sen per share and six sen per unit for the warrants.
Currently, Lim’s son Lim Kim Hoe is the executive director of ML Global. He was appointed on Aug 1, 2014.
LBS Bina said the share acquisition was fully funded through bank borrowings, while the takeover offer will be funded via internally generated funds and/or bank borrowings, the exact proportion of which has yet to be determined.
The property group acknowledges that it intends to maintain the listing status of ML Global, which would become LBS Bina’s listed subsidiary.
“The share purchase consideration was arrived at on a willing buyer-willing seller basis after taking into consideration the prevailing market price of ML Global shares immediately prior to the date of the share acquisition.”
Both LBS Bina and ML Global were suspended from trading an hour before closing yesterday. Trading in the two companies’ securities would resume today. ML Global was last traded at 59.5 sen yesterday, with LBS Bina at RM1.60.