Euro Holdings gets takeover offer from executive director, 2 shareholders

PETALING JAYA: Euro Holdings Bhd has received a conditional mandatory takeover offer from its executive director and two major shareholders to acquire the remaining 52.3% of the share capital that they do not already own, for a cash consideration of 44 sen a share.

The joint offerors – executive director and a major shareholder, Datuk Seri Choong Yuen Keong and two other major shareholders, Datuk Tong Yun Mong and Tee Wee Sien -- want to acquire all the remaining shares in Euro not already held by them, amounting to 42.394 million shares.

In a Bursa Malaysia statement, the furniture maker noted that the offerors intended to maintain the listed status of the company.

“In the event Euro does not comply with the public spread requirement as a result of the offer, the offerors will work together with the company to explore various options or proposals within three months from closing date or such extended timeframe as allowed by the relevant authorities to enable Euro to comply with the requirement,” the filing noted.

The company said the offerors had entered into three share purchase agreements, triggering the mandatory takeover offer. The offer price was determined based on the highest consideration paid by the offerors per share for the past six months prior to the notice.

Tee had entered into a share purchase agreement with chairman Datuk Seri Mohd Haniff Abd Aziz, who is also a major shareholder, to acquire a 12.35% stake for RM4.2mil, or 42 sen per share, in cash.

Tong and Choong have also separately acquired a 1.85% and 2.09% stakes for RM660,000 and RM746,240, or 44 sen per share.

Following that, the offerors collectively hold an aggregate of 47.66%.

The offerors confirmed that the offer would not fail due to insufficient financial capability and that every holder who wished to accept the offer would be paid in full by cash.

The filing also stated the joint offerors did not intend to compulsorily acquire any outstanding offer shares for which valid acceptances have not been received if the offer had been accepted by the holders of not less than nine-tenths in the nominal value of the offer shares.

Euro’s share price closed at 54.5 sen yesterday, down 1.5 sen.