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KUALA LUMPUR (March 26): Amazing Parade Sdn Bhd is making a mandatory takeover offer to Eastern & Oriental Bhd (E&O) at 60 sen / share after it bought a 10.89% stake in Sime Darby Bhd.
The offer price is 1.5 sen higher compared to the current closing price of 58.5 sen. The housing stock is up 62.5% from 36 sen in early November last year.
In a filing with Bursa Malaysia, E&O said it received notice from the MGO of Amazing Parade, the private vehicle of the Tee brothers, who control the construction company Kerjaya Prospek Group Bhd.
The latest share purchase has raised Amazing Parade’s collective stake and the parties acting in concert to 42.71% from 31.82%. Consequently, Amazing Parade is obliged to make a takeover bid.
Bidders intend to maintain E&O listed status on the main market. The takeover bid is conditional on the bidders jointly owning more than 50% of the shares of the real estate company.
Currently, Datuk Tee Eng Ho, co-founder and CEO of Kerjaya Prospek, sits on the E&O board as a non-independent and non-executive director.
According to the filing, Amazing Parade shareholders are Eng Ho (25%) and his spouse Datin Toh Siew Chuon (25%) and Tee Eng Seng (50%).
This will be one of the Bursa-listed real estate companies controlled by the Tee brothers. The other is GSB Group Bhd, whose CEO is Toh.
In a separate announcement, Sime Darby said that he had dumped his last block of shares in E&O to Amazing Parade for RM93.5 million in cash.
The group said in a stock presentation that its wholly owned indirect subsidiary Sime Darby Nominees Sdn Bhd (SD Nominees) today entered into a share sale agreement to divest its entire stake in E&O, comprising 155.83 million common shares. and that represent approximately a 10.89% stake in the capital stock. in outstanding E&O shares to Amazing Parade for a total cash consideration of RM93.5 million or 60 sen per share.
Sime Darby said the divestiture is in line with its current exercise of rationalizing non-core assets.
Sime Darby bought E&O in 2011. The group acquired a 30% stake in the company at RM2.30 per share or RM766 million from E&O Managing Director Datuk Seri Terry Tham Ka Hon and several other major E&O shareholders.
In 2014, Sime Darby sold 110 million shares or a 9.9% stake to Tham at RM2.90 per share or RM319 million. In 2016, he sold another 125.98 million shares or a 10% stake to Tham at RM2.60 or RM342 million.
Sime Darby closed one sen or 0.41% lower at RM2.40 today, valuing the group at RM16.33 billion.
Read also:
Sime Darby sells 10.89% stake in E&O for RM93.5 million in cash
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