KUALA LUMPUR (Oct 15): QL Resources Bhd (QL) announced today it has despatched the Offer Document to all Lay Hong Bhd (LHB) shareholders to purchase their shares at RM3.50 apiece, after triggering a mandatory general offer (MGO) on Oct 7, 2014, by owning more than 33% of the poultry farmer’s shareholdings.

“This offer represents an excellent opportunity for LHB shareholders to realise their investment in cash immediately,” QL Executive Director Chia Mak Hooi said in a press statement released today, adding LHB shareholders should receive the relevant document and make an “informed decision”.

According to the statement, the offer price of RM3.50 is a premium of 98 sen or 38.89% over the five day volume weighted average market price (VWAP) of LHB’s shares, up to and including the last trading day before QL announced the takeover offer on Sept 24, 2014.

In the statement, Chia, who is the son of QL’s co-founder and Managing Director Chia Song Kun, has reiterated the rationale for QL to launch the takeover for LHB.

“While QL’s shareholding in LHB is substantial, we are still a minority shareholder who have been denied a seat on the Board and therefore, unable to contribute and play a role in the growth of LHB, which would have mutually benefited minority shareholders,” he explained.

“Our intention is to give a good offer to LHB shareholders, to realise the value of their investment,” Chia added.

LHB’s major shareholders, led by the Yap family, had on its latest annual general meeting voted against the re-election of Chia, who was the sole board representative from QL, without any explanation or prior known conflict.

The Yaps controls almost 38% of LHB, while QL had since raised its holdings in the poultry farmer from 26.81%, before the takeover was announced on Sept 24, to over 34% as at Oct 15, 2014.

“We are aware that some quarters have commented that QL could have saved money by accumulating shares (in the open market), until it triggers a MGO,” Chia mentioned.

“This action would have compromised everything that QL stands for — integrity and trustworthiness. We chose to inform LHB and to make it public as soon as possible, and offer a fair price to all, and attractive value to all LHB shareholders,” he remarked.