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KUALA LUMPUR (Aug 29): A unit of TA Global Bhd that manages the Trump International Hotel in Vancouver, Canada, filed for bankruptcy due to its operations being affected by the Covid-19 pandemic.
Reuters reported that TA Hotel Management Ltd Partnership (TAHMLP) said that the temporary closure since March due to the pandemic had affected the hotel’s business.
A statement on the company’s website said ongoing expenses since the outbreak and lack of revenue “have placed TAHMLP in a position of insolvency.”
TAHMLP owes C $ 4.79 million (RM15.22 million) and has total assets of C $ 1.1 million, according to Reuters, citing documents filed in Canada.
TA Global is currently being privatized by its parent company TA Enterprise Bhd (TAE) following an announcement on February 12 that the group’s president and co-founder, Datuk Tony Tiah Thee Kian, had proposed to acquire up to 2.12 billion shares or one stake. 39.83% in the share capital of the ownership group.
TA Global shareholders can choose between a cash offer of 28 sen for each existing share or a share exchange based on an exchange ratio of 0.4211 new ordinary shares in APR that will be issued at 66.5 sen each per each TA Global share delivered.
In May, however, TAE had requested to withdraw the takeover bid, citing the adverse impact of Covid-19 on TA Global for the financial year ended December 31, 2020, due to the temporary suspension of operations of various group hotels in March and April.
A month later, the Malaysian Securities Commission (SC) rejected the withdrawal request and said that any announcement of a firm offer should be made only after careful and responsible consideration, as once the offer is made, it is likely the market for the company’s shares. to be supported by the offer price.
In July, TAE said that the tangible properties of TA Group should be revalued, due to a delay in the implementation of its takeover bid for TA Global “to ensure that the valuation date that forms the basis of the certificate of valuation is included. in the circular, it will not be more than six months before the date of the circular issued to shareholders. ”
On August 11, the group said that the SC had granted a time extension for TAE to submit the offering document and acquire Bursa Securities approval no later than November 13 this year, while the draft circular independent advice must be submitted to SC and approved by November 12.
Read also:
Tony Tiah To Take TA Global Private Through His Flagship Company
TA Enterprise seeks approval from SC to withdraw TA Global’s takeover bid
SC rejects TA Enterprise’s request to withdraw the acquisition offer to TA Global
TA Enterprise should have considered the risks before announcing a takeover bid – SC
TA Enterprise: Group properties must be revalued due to delay in the implementation of the takeover offer
Edited by Lam Jian Wyn
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