Terengganu govt offers RM3.10 a share to privatise EPIC

by **hlk** Wed 24 Aug 2011, 19:29

KUALA LUMPUR: The Terengganu state government, which owns a total of 67.24% stake in Eastern Pacific Industrial Corp Bhd (EPIC), has offered to acquire the remaining 32.76% stake shares at RM3.10 each.

This is 17 sen above the last traded price of RM2.93 before it was suspended about midday on Wednesday, Aug 24. It reached a 52-week high of RM2.97 on Tuesday.

EPIC said on Wednesdayit had received the notice of unconditional takeover offer from Lembaga Tabung Amanah Warisan Negeri Terengganu (LTAW) and its unit Pembinaan PTB Sdn Bhd (PPTB) which own 22.55% or 37.60 million shares.

The parties acting in concert with LTAW and PPTB are the Terenggganu Incorporated Sdn Bhd (which owns 40.64%) and three other parties owning another 4.06%.

The Trengganu government and parties acting in concert have a combined 67.24% stake. LTAW administers and controls Terengganu’s State Heritage Trust Fund while PPTB is a unit of LTAW.

To recap, LTAW and AHMAD ZAKI RESOURCES BHD [] had entered into a share sale agreement to acquire 35.97 million shares or 21.26% in EPIC for RM111.51 million for RM3.10 per share on Nov 4, 2010.

The acquisition was completed on Aug 23, 2011 and LTAW’s stake in EPIC increased from 0.98% to 22.55% or 37.60 million shares.

With the parties acting in concert, they have a combined 67.24% stake. Subsequently, LTAW and PPTB decided to make a takeover offer.

LTAW and PPTB had also decided to undertake a cash compensation to EPIC shareholders who sold their shares between Dec 10, 2010 and on Aug 23, 2011.

The offerors would offer cash compensation equivalent to the difference between the offer price of RM3.10 and the price at which their shares were sold below the offer price during their period.

Meanwhile, as LTAW and PPTB already own more than 50% of the total voting shares of EPIC, the offer would not be conditional upon any minimum number of valid acceptances of offer shares received.

As at Aug 16, the public shareholding spread of EPIC, excluding the parties acting in concert and the directors, is 32.70% or 54.523 million shares held by 2,814 public shareholders.

The offers do not intend to maintain the listing status of EPIC is the company is unable to comply with the shareholding spread.