Quek ups bid for HK-listed Guoco Group

KUALA LUMPUR: Tan Sri Quek Leng Chan has upped his takeover bid for Hong Kong-listed Guoco Group Ltd to HK$100 per share, raising his offer by 13.6% after minority shareholders rejected the tycoon's previous HK$88 a share offer.
The
deal, now valued at HK$9.37bil from HK$8.25bil earlier, is still at a
24.6% discount to Guoco's net asset value of HK$132.62 per share as at
end-June last year.
Quek, who already owns 74.84% of the diversified Guoco, made the bid via his Malaysia-based private vehicle Hong Leong group.
Trading in the shares of Guoco resumed trading on Wednesday.
The proposed buyout will give Quek, one of Malaysia's richest men, more control of the firm's 14% stake in Bank of East Asia Ltd, Hong Kong's largest family-run bank, Bloomberg reported.
Bank of East Asia is the second largest shareholder in Affin Holdings Bhd with a 23.5% stake behind the Malaysian Armed Forces Board.
In Malaysia, Guoco also has interests in GuocoLand (Malaysia) Bhd via Singapore-listed GuocoLand Ltd, as well as Hong Leong Capital Bhd and Hong Leong Bank Bhd through Hong Leong Financial Group Bhd.
Quek had tried and failed to privatise Guoco in 2004 because the price offered was lower than the market price at the time.
"Guoco
is trading at a big discount to its net asset value, and the low
valuation prompted Quek to seek its privatisation again," an unnamed
Hong Kong hedge fund manager was quoted as saying by The South China Morning Post.
"It remains a big question on whether the deal would succeed this time."