Oversea receives takeover offer from Anzo MD Chai at 30 sen per share

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KUALA LUMPUR (Aug 6): Oversea Enterprise Bhd (OEB), which owns and operates the Chinese restaurant chain under the name Oversea, received a takeover offer from Datuk Chai Woon Chet, the managing director and substantial shareholder of Anzo Holdings Bhd. He is also a director of M3 Technologies (Asia) Bhd.

In an announcement, the company said Chai is offering 30 sen per share. He intends to maintain Oversea's listing on the ACE market of Bursa Malaysia. 

The offer of 30 sen is a 4.76% discount to the 31.5 sen closing price or volume weighted average market price (VWAM) prior to the notice. However, it is a 24.07% premium to the three-month closing price or VWAM of Oversea shares. 

theedgemarkets.com had reported that Tan Sri Desmond Lim was previously one of the parties mulling the acquisition of an equity stake in OEB.

Lim is said to be on a shopping spree for attractive assets, such as food & beverage businesses.

When contacted about his interest in OEB, an officer at Lim’s personal office informed theedgemarkets.com that the tycoon declined to comment.

OEB's director was also tight-lipped on the matter.

The Chinese restaurant operator's earnings have not been stellar. It has been loss-making for the past three financial years ended March 31.

Falling into the red in FY2018 with a net loss of RM4.9 million from a net profit of RM459,000 in FY2017, OEB continued to bleed, registering RM4.5 million net loss in FY2019 and RM5.5 million net loss in FY2020. 

Revenue for the group has been on a downtrend for at least the past six years.

From RM62.4 million in FY2015, revenue dropped to RM61.1 million in FY2016, RM60 million (FY2017), RM58.5 million (FY2018), RM55.2 million (FY2019) and RM51.8 million (FY2020).

Its net asset per share stood at 20 sen as at March 31, 2020. 

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Desmond Lim to buy a stake in F&B chain Oversea Enterprise?