Update Ogawa gets takeover offer at RM1.05/share from China firm

Update Ogawa gets takeover offer at RM1.05/share from China firm
Business & Markets 2013
Written by Ho Wah Foon of theedgemalaysia.com
Monday, 09 September 2013 18:24

KUALA LUMPUR (Sept 9): OGAWA WORLD BHD [] (OWB) announced that it has received a notice of voluntary conditional take-over offer for all its shares at RM1.05 per share from a Xiamen-based Chinese firm.

If the offer is successful, the offeror does not intend to maintain the listing status of Ogawa last traded at 86 sen, according to the offer document.

In a filing with Bursa Malayisa, Ogawa said the offer will cover all the ordinary shares of RM0.50 each in OWB (excluding treasury shares) not already held by the offeror and all the new OWB shares that may be issued prior to the closing of the offer arising from the exercise of OWB’s executives’ share option scheme.

The acquisition will be satisfied wholly by cash at RM1.05 per OWB share.

According to the offer document posted on Bursa, the offer price was reached after taking into account the massage chair and health equipment maker’s historical financial results up to end-June 2013.

The offer is conditional upon the offeror having received valid acceptance by the closing date (to be determined later) in aggregate shares of more than 50% of Ogawa shares (exclusing treasury shares).

The ultimate offeror of the takeover is Xiamen Comfort Science and TECHNOLOGY [] Group Ltd (XCSTG), a company listed on the Shenzhen Stock Exchange.

Involved in the making and sale of health equipment, XCSTG has a paid up capital of 240 million reminbi, said the offer document.

“In accordance with the Malaysian Code on Take-Overs and Mergers 2010, the board of Ogawa (save for Wong Lee Keong, Lim Poh Khian, Lim Mee Ling, Cheah Yew Kong, Chong Swee Main and Lim Wai Heng) will deliberate on the offer and consider whether to seek an alternative offer,” said Ogawa in its filing.