Hextar Retail takeover turns mandatory after stake climbs to 35.42%
What's the deal? HEXTAR Portfolio Sdn BhdDealroom has a profile for this one. Try Dealroom →'s conditional voluntary takeover offer for Hextar Retail BhdDealroom has a profile for this one. Try Dealroom → has become a mandatory offer after it bought an additional 4.82% stake in the open market. The purchase of 22.41 million shares lifted the collective holding of Hextar Portfolio and ultimate offeror Datuk Ong Choo Meng to 164.7 million shares, or 35.42%, from 30.6% as at September 1.
Why now? The buying pushed the offeror group above the 33% threshold that triggers a mandatory takeover offer under Malaysia's take-over rules. The shares were acquired at prices not exceeding the cash offer price of 43 sen each, principal adviser RHB Investment Bank BhdDealroom has a profile for this one. Try Dealroom → said.
The terms: The offer price stays at 43 sen per share in cash, since neither the offerors nor persons acting in concert with them paid more during the preceding six months or the offer period. That price marked a 7.5% premium to Hextar Retail's closing price of 40 sen on August 7 and about 1.05 times its net assets per share of roughly 41 sen as at March 31.
Where it stands: As at 5pm today, the offerors had received valid acceptances for 684,300 shares, or 0.15%, taking total holdings and valid acceptances to 165.39 million shares, or 35.57%. A further 373,000 shares, or 0.08%, remain subject to verification.
What's the endgame? The takeover was first announced on August 10, when Ong Choo Meng and Ong Kook Liong made a conditional voluntary offer at 43 sen per share. The offerors said they intend to maintain Hextar Retail's listing on the Main Market of Bursa MalaysiaDealroom has a profile for this one. Try Dealroom → after the deal.
The signal: With the offer now mandatory and subject only to the acceptance condition, the first closing date is 5pm on September 22. The outcome will hinge on total voting shares held by the offeror group and persons acting in concert with it.
Read more: themalaysianreserve.com
Image credit: nenad53
