Versatile Creative gets Iris-related takeover offer at 50 sen a share (Update)

by **Cals** Mon 23 Sep 2013, 16:16

Published: Monday September 23, 2013 MYT 2:09:00 PM
Updated: Monday September 23, 2013 MYT 4:08:24 PM
Versatile Creative gets Iris-related takeover offer at 50 sen a share (Update)

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KUALA LUMPUR: Versatile Creative Bhd has received a takeover offer from Iris Corporation Bhd's unit Iris Healthcare Sdn Bhd and several others at 50 sen a share.

Iris Corp said on Monday the parties involved in the takeover included Versatile Credit & Leasing Sdn Bhd, Iris Corp group managing director and CEO Datuk Tan Say Jim and Iris Corp co-founder Datuk Lee Kwee Hiang who owned a combined 24.89% or 27.54 million Versatile Creative shares.

The takeover involves the remaining 83.10 million shares valued at RM41.55mil.

At 50 sen a share, this was four sen above noon close of 46 sen.

Versatile Creative said the board would convene a meeting to deliberate on this exit offer and make an announcement in due course.

"The board will arrange to appoint an independent advisor to advise the board and the holders of the offer shares in relation to the exit offer," said Versatile Creative.

Versatile Creative's net asset per share was 58 sen as at June 30. It posted net profit of RM189,000 in the second quarter but for the first half, it reported net loss of RM1.04mil.

Versatile Creative's core activities are manufacturing and trading of paper, board packaging products, specialising in offset-printed boxes and offset laminated cartons; manufacturing and sale of plastic packaging products.

The joint offerors do not intend to maintain the listing status of Versatile Creative.

"Iris Corp also expects the proposed offer will enable the company to leverage on Versatile Creative's existing relationship with its clients in the food and beverage manufacturing industry to enhance the marketing opportunities of the fresh produce from the aforesaid farms," it said.

On the rationale for the takeover, Iris Corp said it had set up 11 farms throughout the country, which included two farms under the Rimbunan Kaseh Projects in Lipis, Pahang and Serkam, Melaka and one farm under the Sentuhan Kasih project in Tenggaroh, Johor.

To recap, on Sept 19, Iris Corp had entered into a MoU with Federal Land Development Authority (Felda) to implement seven Sentuhan Kasih projects in several states in Peninsular Malaysia including the Sentuhan Kasih project in Tenggaroh, Johor.

"The company is currently negotiating with certain state governments to undertake four Rimbunan Kaseh Projects identified by the respective state governments. Sentuhan Kasih is Iris Corp Group's rural development plan to sustainably provide basic needs and amenities, modern infrastructure, all of which are supported by modern integrated farming activities pursuant to letters of award issued by Felda," it said.

As for the Rimbunan Kaseh project, it would be to develop farms with housing using its IRIS-KOTO industrialised building system, utilising modern farming methodologies and construct basic infrastructure. These farms also produce fresh fruits, vegetables and fish.

"Part of Iris Corp's proposed business plan is to set up food distribution, a division that will be involve in marketing and distribution of farm produce from Rimbunan Kaseh and Sentuhan Kasih farms.

"The food distribution division may package the fresh produce from these farms in a timely manner and to distribute and market or sell the packaged produces under a brand name," it said.

Versatile Creative and its subsidiaries is mainly involved in the manufacturing and trading of paper board packaging products, specialising in offset-printed boxes and offset-laminated cartons; manufacturing and sale of plastic packaging products; and provision of colour separation and lithography services and printed materials.

"As the Iris Corp group is not equipped with the required expertise in food packaging and distribution, the proposed acquisition of Versatile Creative group will be a strategic fit into the proposed business plan of Iris Corp group in the food distribution division.