KUALA LUMPUR: Techbase Industries Bhd’s (TIB) subsidiaries, Honsin Apparel Sdn Bhd (HASB) and HiQ Media (Malaysia) Sdn Bhd (HMSB), signed a collaboration agreement with Target 1 Sdn Bhd (TSB) to form a strategic alliance to attain control of South Malaysia Industries Bhd (SMI).
This collaboration includes essential agreements, such as recognising HASB, HMSB, and TSB as a group working together and holding over 33% of SMI’s shares.
The collaboration agreement is not subject to the approval of TIB shareholders and will not affect the company’s share capital and substantial shareholders’ shareholdings.
This new update has triggered the obligation to extend a mandatory general offer (MGO) to acquire the remaining shares of SMI that are not already owned by the parties involved.
In a filing to Bursa Malaysia, SMI said it had received a notice of an unconditional mandatory take-over offer from TA Securities Holdings Bhd, on behalf of the TSB, to acquire the remaining ordinary shares in SMI for RM0.45 per share.
The agreement by HASB, HMSB, and TSB as a group also emphasises a unified approach to decision-making and control over SMI.
The overarching goal of this collaboration is to improve SMI’s operational efficiency and enhance shareholder value.
The Bursa Malaysia filing also noted that, through the collaboration agreement, HASB and HMSB are looking forward to working with TSB to achieve their common objective of improving SMI’s operational efficiency and enhancing its shareholders’ value.
