Lotus KFM directors up stake in MESB to 44.14%, triggering MGO

Lotus KFM directors up stake in MESB to 44.14%, triggering MGO
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KUALA LUMPUR (Oct 12): MESB Bhd has received a takeover offer from Lotus KFM Bhd's directors Wong Sak Kuan and Yau Ming Teck, after the two acquired a total of 29.49 million shares in MESB, for RM8.85 million or 30 sen per share.

Upon completion of the acquisitions, Wong and Yau's stake has increased from a collective 17.34 million shares, representing a 16.35% equity stake in MESB, to 46.83 million shares or a 44.14% equity stake in the leather products maker, triggering the threshold for a mandatory general offer (MGO) from the two.

The two are offering 31.5 sen per share and 1.5 sen per warrant for all the shares and warrants they do not own in the company. The offer will be open for a period of at least 21 days from the posting date.

Wong is currently the vice chairman and major shareholder of Main Market-listed flour producer Lotus KFM. He is also present on the boards of several other private companies.

Yau, on the other hand, sits on the boards of HLT Global Bhd and UMS-Neiken Group Bhd. He is also a director and substantial shareholder of Lotus KFM.

The joint offerors intend to maintain the listing status of MESB on the Main Market of Bursa Securities, according to a filing with the bourse.

Earlier today, the bourse approved the company's request for a suspension of trading of its listed securities, prior to this announcement.

The counter was last traded at 35 sen, up three sen or 9.4%. Its market capitalisation was RM37.14 million. The stock, which has risen 75% from the 20 sen it was trading at in early August, will resume trading at 9am tomorrow.

Tan Choe Choe