KUALA LUMPUR: QL Resources Bhd, which launched a conditional voluntary takeover of Lay Hong Bhd two weeks ago, announced yesterday that the takeover offer had become mandatory as its shareholding in the latter had exceeded 33%.
In a filing with Bursa Malaysia yesterday, QL said as a result of its recent purchases of 3.46 million Lay Hong shares from Sept 24 to Oct 7, its shareholding in the latter had exceeded 33% as at Oct 7. QL’s interest in Lay Hong stood at 13.4 million shares or 26.81% as at Sept 22.
Filings with Bursa showed that QL on Sept 24, 26, 29, 30, Oct 1 and 2, purchased shares in Lay Hong at prices between RM3.17 and RM3.50 a piece.
“In view of the above, the present voluntary takeover offer has become a mandatory takeover offer in accordance with Paragraph 14.1 of Practice Note 9 of the [Malaysian Code on Takeovers and Mergers 2010]” said QL. It added that the terms and conditions of the offer will remain the same under the mandatory general offer.
To recap, QL had on Sept 24 proposed to undertake a conditional voluntary takeover offer for Lay Hong at RM3.50 per share, following the non re-election of its sole representative, Chia Mak Hooi, on the board of Lay Hong. The offer, which will remain open for acceptances for at least 21 days, will be conditional upon QL having received acceptances, which would result in it holding in aggregate more than 50% of the voting shares in Lay Hong.
Lay Hong closed down one sen to RM3.50 yesterday, giving it a market capitalisation of RM175.14 million.
This article first appeared in The Edge Financial Daily, on October 8, 2014.