Censof: SC agrees that stake buy will not change biz course

by **Cals** Thu 10 Oct 2013, 09:00

Published: Thursday October 10, 2013 MYT 12:00:00 AM
Updated: Thursday October 10, 2013 MYT 7:40:21 AM
Censof: SC agrees that stake buy will not change biz course

KUALA LUMPUR: Censof Holdings Bhd has received confirmation from theSecurities Commission Malaysia (SC) of its concurrence that theproposed acquisition of a 45.03% stake in Time Engineering Bhd would not result in a significant change in its business direction or policy.
In a statement, the specialist for financial management solution, said its subsequent mandatory general offer (MGO) for the remaining shares in Time would not result in a significant change in the company.
“The acquisition and subsequent MGO are therefore not subject to SC’s approval under Section 214(1) of the Capital Markets and Services Act, 2007,” it said.
Censof said prior to this, it has received approval from Bursa Malaysia Securities Bhd to waive from complying with the requirement to obtain the approval of its shareholders.
“However, the approval is subjected to the condition that Censof will procure shareholders’ ratification for the acquisition and the MGO within two months from the date of completion of the acquisition,” it said. — Bernama

In light of these developments, it said, the conditional share sale and purchase agreement dated Sept 12, 2013 in relation to the acquisition has become unconditional resulting in Censof being deemed to have beneficial interest over the 349.112 million ordinary shares of 20 sen each in Time.
Censof said the acquisition will result in synergies that will enable both companies to strengthen their value proposition, capitalise on an enlarged customer base, and at the same time delivering a more comprehensive product offering and enhancing shareholder’s value in the long run.
Government’s investment arm, Khazanah Nasional Bhd, first announced its intention to divest its 45.03 per cent stake in Time on Dec 19 last year as part of its continuing effort to assist the government in promoting entrepreneurship and raising Bumiputera equity participation in the Malaysian corporate sector.
The selection process involved three stages and Censof successfully won the bid and sealed the deal worth nearly RM70 million last month. — Bernama