OFF-MARKET DEAL: 10.7% AbleGroup stake crossed off market, conditional MGO triggered

OFF-MARKET DEAL: 10.7% AbleGroup stake crossed off market, conditional MGO triggered
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KUALA LUMPUR (Sep 18): AbleGroup Bhd, a logistics service provider turned property developer, saw 10.7% of its outstanding shares or a total of 28.3 million shares worth RM3.68 million transacted in an off-market trade, according to Bloomberg.

The shares were traded in a single tranche of 13 sen per share, representing a discount of 3.7% to the closing price of 13.5 sen for AbleGroup.

While there is no filing from the parties involved, AbleGroup last Thursday announced that its controlling shareholder Parallel Pinnacle Sdn Bhd had entered into a share sale agreement (SSA) with Loi Heng Sewn to buy 28.3 million shares in AbleGroup for 13 sen per share.

The company’s managing director Datuk Lim Kim Huat and his spouse Datin Chan Shiou Bin are controlling stakeholders of Parallel through their interest in Golden Century Overseas Ltd.

After the share purchase, Lim’s and Chan’s collective equity stake rose to 43.97% from 33.25%. Consequently, they have extended a mandatory take-over (MGO) offer to all the remaining AbleGroup shares not owned by them at 13 sen per share.

However, the MGO is conditional upon the offerors holding more than 50% of the voting shares in AbleGroup as at the close of the offer.