KUALA LUMPUR: Eastern & Oriental Bhd (E & O) group managing director Datuk Seri Terry Tham Ka Hon (pic) has bought 10% equity interest in the company from Sime Darby Bhd for RM327.5mil, raising his stake to 21% to become E & O’s single largest shareholder.
In a statement to Bursa Malaysia, E & O said Tham, through his vehicle Paramount Spring Sdn Bhd, acquired the additional 125.978 million shares at RM2.60 per share. That is a premium of 63.5% of the shares’ closing price of RM1.59 on Bursa Malaysia on Friday.
In addition, Tham bought all 48.796 million convertible warrants 2015/2019 in E&O held by Sime Darby at 30 sen each, or RM14.64mil. That is a premium of 62.2% over the warrants’ closing price of 18.5 sen on Friday.
Combined with the shares, Tham is forking out about RM342.2mil in all.
Sime Darby, previously the largest shareholder, remains a substantial shareholder with a 12.2% stake. It will continue to have board representation in the property developer.
Tham, who will be redesignated executive deputy chairman on July 1, said: “This move to increase my stake in the company is a reflection of my continued conviction and confidence in the E&O Group and the brand that has been built through the years. I strongly believe that the group has tremendous potential and I am keen to participate in its long-term growth trajectory.
“On the back of the success we have achieved at Seri Tanjung Pinang Phase 1, our Phase 2 project is underway with initial mobilisation works in progress upon securing all necessary authorities’ approvals. This is a catalyst project for E&O, as it is significant for Penang, and I am keen to be even more involved in bringing its concept masterplan to reality.”
Sime Darby, meanwhile, said the disposal to Tham was part of its asset monetisation plan.
“The share sale forms part of our rationalisation of property investments taking into account opportunities for future growth in areas of strategic significance. The transaction reflects Datuk Seri Terry Tham’s commitment to the long term future and success of E & O,” said Sime Darby president and group chief executive Tan Sri Mohd Bakke Salleh.
Already a subscriber? Log in.
Limited time offer:
Cancel anytime. No ads. Auto-renewal. Unlimited access to the web and app. Personalised features. Members rewards.
Follow us on our official WhatsApp channel for breaking news alerts and key updates!