The MGO was triggered by LBS
KUALA LUMPUR: Property company LBS Bina Group Bhd
has made an unconditional mandatory takeover offer for ML Global Bhd after it raised its stake to 50.9%.
LBS Bina said on Monday the offer for ML Global, which is involved in construction and production of roof tiles, was 56 sen per share and six sen per warrants for the shares which it does not own.
It had bought 17 million shares of ML Global its 18.97% stake from the latter's managing director Datuk Beh Hang Kong for RM9.52mil or 56 sen per share via a direct business transaction. This saw LBS Bina's stake increased to 50.9%.
Based on ML Global's audited consolidated financial statements for FY ended Dec 31, 2015, the profit after taxation and net assets was RM10.2mil and RM30.3mil.
“The total contract value for the major recent construction projects completed by ML Global in the FYE Dec 31, 2015 and up to the LPD amounts to approximately RM9.8 million.
LBS Bina said in August 2014, it emerged as a substantial shareholder of ML Global following its participation in the latter's fund raising exercise to regularise its PN17 condition.
The regularisation plan o was completed on Oct 31, 2014 and the upliftment of the PN17 classification took effect on March 11, 2016.
“The share acquisition represents an investment by the company in ML Global's businesses which are complementary to the LBS Bina’s property development and construction businesses," it said.
It added the move was to gain control of ML Global to drive the future strategic direction and business expansion.
“The share acquisition enables the company to exercise management and operational control over the ML Global's businesses with a view of improving ML Global’s future financial performance and correspondingly enhance the value of the company’s investment in ML Global,” it said.
