Goldis takeover plan for IGB hits a snag

by **Cals** Wed 20 Aug 2014, 22:20

Business & Markets 2014

Written by Jonathan Gan of theedgemalaysia.com

Wednesday, 20 August 2014 10:53

KUALA LUMPUR (Aug 20): Goldis Bhd’s (Goldis) plans to takeover IGB Corporation Bhd may have hit a snag after its collective shareholdings failed to exceed the minimum requirements of more than 50%.
In an announcement yesterday to Bursa Malaysia, the private equity investment company said that its collective shareholdings would amount to approximately 48.29% which falls short of the required 50%.
“The collective shareholdings of Goldis and the person’s acting in concert (PACs) who have provided the aforementioned undertakings are approximately 48.29%,” it said in the announcement.
Goldis had earlier said last month that the company owns a 31.11% stake in IGB while the persons acting in concert with it had 20.49%.
In total, Goldis should be able to raise the group’s shareholdings in IGB to 51.15%.
However, the company was only able to achieve a total aggregate shareholding of 17.18% from its PAC’s to total 48.29%.
The rationale for the takeover according to Goldis was that it provided the company “an opportunity for Goldis to obtain a significant block of IGB Corp Shares, by increasing its direct interests to over 50% at a reasonable cost.”
IGB Corporation Bhd shares rose to a year-to-date (YTD) high of RM2.88 per share following announcements of Goldis’s takeover bid for RM2.88 per share.
At 10:36am today, IGB shares were down by 1 sen to RM2.87 while Goldis shares fell 2 sen to trade at RM2.39 per share.