Major Team proposes VGO at 17 sen apiece

Major Team proposes VGO at 17 sen apiece
Business & Markets 2013
Written by Charlotte Chong of theedgemalaysia.com
Tuesday, 16 July 2013 09:51

KUALA LUMPUR: MAJOR TEAM HOLDINGS BHD [] (MTHB) has proposed a voluntary withdrawal from the Main Market of Bursa Malaysia via a voluntary general offer (VGO) at 17 sen per share, a 21.4% premium to yesterday's closing price of 14 sen.

In a statement to Bursa Malaysia yesterday, MTHB said its major shareholder Kong See Kuan had proposed to acquire the remaining 36.88 million shares or a 37.3% stake at an offer price of RM6.27 million or 17 sen apiece.

Kong has 2.2% direct and 60.5% indirect stakes held via Excellent Avenue (M) Sdn Bhd (EASB) and Ample Potential Sdn Bhd (APSB).

Kong is a director of MTHB subsidiaries — Stone Worlds Marketing Sdn Bhd, Stone World Sdn Bhd and Stone Export Sdn Bhd. She is also a director of EASB and APSB.

"The joint offerors believe that the proposed delisting will provide greater flexibility for the offerors to review and implement restructuring plans," according to the statement.

The offerors said MTHB, which manufactures dimension stone products, has been recording losses from the 2005 financial year ended Dec 31 (FY05) to FY12, it said.

The statement added that the joint offerors intend to conduct a review of the loss- making operations of MTHB and its subsidiaries.

The proposed exit offer will not be conditional upon the receipt of any minimum number of valid acceptance as the joint offerors already hold more than 50% of the voting shares in the company.

However, the exercise is conditional upon approvals from shareholders, Bursa Securities and the Ministry of International Trade and Industry.



This article first appeared in The Edge Financial Daily, on July 16, 2013.