Iris Corp MD sells stake in Versatile Creative

PETALING JAYA: After a failed takeover bid and foiled privatisation plan, Iris Corp Bhd's managing director Datuk Tan Say Jim has sold his 20.64% stake in Versatile Creative Bhd to Datuk Lee Kwee Hiang via direct business transaction.
Lee, the co-founder of Iris Corp, has now emerged as a substantial shareholder with a direct interest of 24.9% stake in Versatile Creative, while Tan holds a marginal 0.13% stake or 146,000 shares in the paper and packaging materials firm.
Tan disposed the block of shares on Oct 24 through Versatile Credit and Leasing Sdn Bhd, a private vehicle, at an undisclosed price.
Subsequently, Versatile Creative chairman Shahabuddin Abdullah @ Lee Seng Pun and spouse Noor Azmi Ahmad have also ceased to be a substantial shareholders in the company after the share sales as they are deemed interested in Wisefield Resources Sdn Bhd, which holds equity stake in Versatile Credit.
Iris Healthcare Sdn Bhd, a wholly owned subsidiary of Iris Corp, is the largest shareholder of Versatile Ceative with a 39.6% stake.
To recap, Versatile Creative had in September last year received a takeover offer from Iris Healthcare Sdn Bhd, Tan and Lee at 50 sen apiece.
Back then, the joint offerers together controlled a 25% stake in Versatile Creative, while the takeover involved the remaining 83.1 million shares valued at RM41.55 million in cash.
However, the takeover bid fell slightly short of the 90% threshold needed to effect a compulsory acquisition.
Last July, minority shareholders of Versatile Creative blocked its privatisation despite the fact that its independent adviser, Kenanga Investment Bank Bhd, had urged shareholders to accept the 50-sen-per-share offer, saying it was both fair and reasonable.
Minority shareholders who rejected Iris' offer contend that the 50-sen offer materially undervalues the loss making company.
Following the privatisation failure, Versatile Creative executive director Datuk Eow Kwan Hoong said the company was considering several options, including a private placement and a pare-down of its major shareholders' stake, to comply with the public shareholding spread requirement.