TA Enterprise: Group's properties have to be revalued due to delay in implementing takeover offer

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KUALA LUMPUR (July 20): TA Enterprise Bhd (TAE) said due to a delay in implementing its takeover offer for an additional stake in its 60.17%-owned unit TA Global Bhd (TAG), the material properties of the TA Group have to be revalued.

In separate filings with Bursa Malaysia, TAE and TAG said the properties have to be revalued by the respective independent valuers to comply with the Main Market Listing Requirements.

This is "to ensure that the date of valuation which forms the basis of the valuation certificate to be included in the circular, shall not be more than six months before the date of the circular issued to shareholders", the filings said.

"The updated valuation reports to be prepared by the respective independent valuers will take into consideration the effects of Covid-19 on the material properties of TA Group," they added.

As a result, the circular in relation to the offer and the proposed subscription to shareholders of TAE is now scheduled to be released in mid-November.

The dispatch of offer documents to shareholders of TAG is also targeted for mid-November.

Subsequently, the extraordinary general meeting to seek approval from the non-interested shareholders of TAE in relation to the offer is now expected to be held at the end of November, according to the filings.

Under the offer, first announced on Feb 12, TAE plans to acquire up to 2.12 billion shares in TAG, representing up to a 39.83% stake, at 28 sen per share for a total of RM593.43 million.

To part-fund the deal, TAE proposed the issuance of up to 550.54 million new TAE shares at 66.5 sen apiece, to be subscribed by controlling shareholder Datuk Tony Tiah.

On May 6, TAE sought the Securities Commission Malaysia's (SC) approval to abort the plan, citing the adverse impact of Covid-19 pandemic as the main reason. However, the SC rejected the request.

TAE's share price closed unchanged at 57 sen, bringing it a market capitalisation of RM975.79 million, while TA Global settled unchanged at 25.5 sen, valuing the group at RM1.36 billion.