Masterskill shareholder to sell 29.76% stake for RM134m

by **Cals** Thu 20 Mar 2014, 18:44

Business & Markets 2014

Written by Chong Jin Hun of theedgemalaysia.com

Thursday, 20 March 2014 12:06

KUALA LUMPUR (Mar 20): Masterskill Education Group Bhd major shareholder Siva Kumar M Jeyapalan stands to reap RM134 million from the planned sale of his 122 million shares or 29.76% stake in the firm to an individual at RM1.10 each.

In a statement to Bursa Malaysia today, Masterskill said Siva Kumar had signed a call and put option agreement with Gary How Soong Khong who is based in Hong Kong.

"The call option may be exercised by Mr. Gary How by serving Mr. Siva Kumar , at any time within the period of six (6) months from the date of the agreement (hereinafter referred to as call option notice). The call option notice once issued cannot be withdrawn without the prior written consent of Mr. Siva Kumar.

"The put option may be exercised by Mr. Siva Kumar by serving Mr. Gary How, at any time in the period commencing on the date falling nine (9) months from the date of the agreement to the date falling ten (10) months from the date of the agreement (hereinafter referred to as put option notice). The put option notice once issued cannot be withdrawn without the prior written consent of Mr. Gary How.

Trading of Masterskill shares was suspended between 9am and 10am today in conjunction with the announcement. At 12.13pm, Masterskill shares rose three sen or 8% to 41.5 sen with some 16 million units done.

The selling price of RM1.10 a share is a 186% premium to Masterskill shares' latest closing price of 38.5 sen.

Compared to Masterskill's latest reported book value of 61 sen a share, the selling price represents a price-to-book ratio of 1.8 times.