KUALA LUMPUR (July 4): Shareholders of TA Global Bhd stand to receive a mandatory general offer (MGO) from Datuk Tony Tiah Thee Kian if his interest in TA Enterprise Bhd crosses the 50% mark.

This is because of TA Enterprise's 60.17% stake in property developer TA Global, in which Tiah and persons acting in concert (PACs) control another 15.34%.

In a filing with Bursa Malaysia today, TA Enterprise said it has received a supplemental notice from Tiah on his takeover offer on Monday (July 2), saying that in the event that his offer turns unconditional, it would trigger an obligation to undertake another MGO for TA Global shares, for an offer price of 31.01 sen per share.

The supplemental notice said the offer price represents the volume weighted average price of TA Global's share price for the last 20 market days prior to the date of the notice.

Tiah and the PACs' offer would become unconditional if they collectively own more than 50% of the voting shares in TA Enterprise.

To recap, on Monday, Tiah launched an MGO for TA Enterprise at 66 sen per share after acquiring 14.33 million shares or a 0.84% stake in the stockbroking firm at between 61 sen and 66 sen per share on the open market.

Following the acquisition, Tiah, who is the co-founder and non-executive chairman of TA Enterprise, held 558.35 million shares or a 32.62% stake in TA Enterprise. The PACs — who have 7.89 million shares or a 0.46% stake in the group — and Tiah 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; 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 of the acquisition, Tiah is obliged to extend an 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 — or about RM755 million in total.

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