This article first appeared in The Edge Financial Daily on July 3, 2018

KUALA LUMPUR: Datuk Tony Tiah Thee Kian has launched a mandatory takeover offer (MGO) for TA Enterprise Bhd at 66 sen per share after acquiring 14.33 million shares or a 0.84% stake in the stockbroking firm for prices between 61 sen and 66 sen from the open market.

Following the acquisition, Tiah, who is the co-founder and non-executive chairman of TA Enterprise, holds 558.35 million shares or a 32.62% stake in TA Enterprise. Together with persons acting in concert (PACs) with him, who hold 7.89 million shares or a 0.46% stake in the group, Tiah and the PACs collectively own 566.24 million shares or a 33.08% stake in TA Enterprise.

The PACs comprise Tiah’s wife Datin Alicia Tan Kuay Fong, or Datin Alicia Tiah as she is more popularly known, who is the managing director and chief executive officer of TA Enterprise; his sister-in-law Kimmy Khoo Poh Kim — who is the executive director of TA Global Bhd, a 60.17%-owned unit of TA Enterprise; his daughters Tiah Sook Lin and Tiah Ee Laine; his brother Datuk Tiah Thee Seng and his brother-in-law Ong Khay Soon.

As a result, Tiah is obliged to extend a MGO to acquire the remaining 1.15 billion shares or 66.92% of TA Enterprise shares he does not own at 66 sen per share — being the highest price paid to acquire TA Enterprise shares within the past six months, for about RM755 million.

The 66 sen offer price represents a 3.58% premium against the five-day volume weighted average price of 63.72 sen per share.

In a filing with Bursa Malaysia yesterday, TA Enterprise said the board of directors has received the notice of conditional MGO from Tiah to acquire the remaining shares in the group.

Ta Enterprise said it will appoint an independent adviser to advise the group and minority shareholders on the reasonableness of the offer.

“The announcement of the appointed independent adviser will be made in due course,” it added.

TA Enterprise also said Tiah intends to maintain the listing status of the group.

The offer will remain open for acceptances until 5pm, not less than 21 days from the date of the notice.

TA Enterprise shares closed up 0.5 sen or 0.76% at 66 sen yesterday, bringing a market capitalisation of RM1.13 billion.