PETALING JAYA: Batu Kawan Bhd has extended a mandatory takeover offer (MTO) to acquire all the remaining shares it does not own in Chemical Company of Malaysia Bhd (CCM) for RM3.10 per share.
This MTO was triggered after Batu Kawan entered into a conditional share purchase agreement with sellers on Nov 17 to acquire a 56.32% stake in CCM for RM292.79 million cash or RM3.10 per share, raising its stake in CCM from 3.41% to about 59.73%.
The offer will also be extended to the persons acting in concert (PACs) with Batu Kawan. The presumed PACs are Batu Kawan managing director and executive director Datuk Lee Hau Hian; Yeoh Chin Hin Investments Sdn Bhd, a company of which Batu Kawan director Datuk Yeoh Eng Khoon is a director and substantial shareholder; as well as Soda Malaysia Sdn Bhd, a wholly owned subsidiary of Taiko Marketing Sdn Bhd. Datuk Lee Soon Hian holds about 69.27% interest in Taiko Marketing.
Soon Hian is the brother of Tan Sri Lee Oi Hian and Hau Hian, the substantial shareholders and directors of Batuk Kawan. Although Soon Hian is a presumed PAC, he is not a director nor is he involved in the management of Batu Kawan.
Batu Kawan intends to maintain the listing status of CCM on the Main Market of Bursa Securities unless it receives valid acceptances resulting Batu Kawan and its associates holding in aggregate 90% or more of the shares.
In the event that it receives valid acceptances of not less than nine-tenths in the nominal value of the shares on or before the closing date, Batu Kawan intends to compulsorily acquire any remaining offer shares from the holders who have not accepted the offer.
Trading in Batu Kawan and CCM shares was suspended for an hour today due to the announcement.
